FedRAMP: Federal Cloud Authorization Guide

The Federal Risk and Authorization Management Program (FedRAMP) provides a standardized approach to security authorization for cloud services used by US federal agencies. Established in 2011 and codified into law by the FedRAMP Authorization Act of 2022, FedRAMP requires cloud service providers (CSPs) to meet rigorous security requirements based on NIST SP 800-53 before they can serve federal customers.

What FedRAMP Covers

FedRAMP defines three impact levels — Low, Moderate, and High — corresponding to FIPS 199 security categorization. Low baseline includes approximately 156 controls, Moderate includes roughly 325 controls, and High includes over 421 controls. Controls span 20 families including access control, audit and accountability, incident response, system integrity, and more.

Beyond initial authorization, FedRAMP requires continuous monitoring including monthly vulnerability scanning, annual penetration testing, annual assessments by a Third Party Assessment Organization (3PAO), and ongoing Plan of Action and Milestones (POA&M) management.

Who Needs FedRAMP

Any cloud service provider that processes, stores, or transmits federal data must obtain FedRAMP authorization. This applies to SaaS, PaaS, and IaaS providers serving federal agencies. The FedRAMP Marketplace lists authorized services, and agencies are required to use authorized products. StateRAMP extends similar concepts for state and local government.

Authorization Paths

CSPs can pursue authorization through two paths. The Agency Authorization path involves partnering with a specific federal agency that sponsors and reviews the authorization package. The Joint Authorization Board (JAB) path — now managed through the FedRAMP Program Management Office — provides a centralized authorization that any agency can leverage. Both paths require a 3PAO assessment.

Cost Considerations

FedRAMP is among the most expensive compliance programs. Low baseline authorization typically costs $250,000 to $500,000. Moderate baseline — the most common — ranges from $500,000 to $1.5 million. High baseline can exceed $3 million. Ongoing annual costs for continuous monitoring run $200,000 to $500,000. Despite the cost, FedRAMP authorization opens access to the $100+ billion federal IT market.