FedRAMP Compliance Requirements & Process for Cloud Service Providers

The Federal Risk and Authorization Management Program (FedRAMP) is a standardized cybersecurity framework for cloud service providers working with U.S. federal agencies. It streamlines cloud adoption by replacing redundant agency-specific assessments with a unified authorization process, enabling faster, secure deployment across government entities.

FedRAMP mandates rigorous security assessments, continuous monitoring, and standardized authorization processes for cloud service providers.

Key elements of the program include:

• Standardized Security Requirements: Based on NIST 800-53 controls, ensuring a consistent approach across agencies.
• Three Authorization Paths: Joint Authorization Board (JAB), Agency Authorization, and CSP Supplied Package.
• Baseline Impact Levels: Low, Moderate, and High—defining the sensitivity of data handled.
• Continuous Monitoring: Ongoing oversight to maintain compliance and mitigate emerging threats.
• Marketplace Listing: Only FedRAMP authorized cloud service providers appear on the FedRAMP Marketplace, signaling trustworthiness and readiness for federal use.

1. Standardize cloud security assessments across federal agencies.
2. Reduce duplication of effort through a “do once, use many times” authorization approach.
3. Ensure consistent implementation of NIST-based security controls.
4. Promote secure cloud adoption in the federal government.
5. Streamline procurement and authorization for cloud service providers.
6. Enhance risk management and visibility across cloud environments.
7. Support continuous monitoring and real-time threat mitigation.
8. Build trust and transparency between federal agencies and cloud providers.
9. Lower costs and timelines associated with compliance and cloud integration.
10. Drive innovation securely by enabling the use of commercial cloud services.

Step 1: Choose Authorization Path
 

Select either the Agency ATO route or the Joint Authorization Board (JAB) P-ATO path, depending on your federal market strategy and sponsor engagement.

Step 2: Prepare Security Documentation

Create the System Security Plan (SSP) and other required documentation that outlines your cloud system’s architecture, controls, and risk posture, mapped to NIST 800-53 controls.

Step 3: Engage a 3PAO

Partner with a FedRAMP-accredited Third Party Assessment Organization (3PAO) to conduct an independent security assessment.

Step 4: Complete the Security Assessment

The 3PAO performs penetration testing, vulnerability scans, and control testing to produce a Security Assessment Report (SAR).

Step 5: Remediate Risks

Address any findings or gaps identified in the SAR. Document your remediation actions and update the security package accordingly.

Step 6: Submit for Authorization

Submit the complete security package (SSP, SAR, POA&M) to the authorizing body (Agency or JAB) for review and approval.

Step 7: Receive ATO or P-ATO

If approved, you receive an Agency Authority to Operate (ATO) or Provisional ATO (P-ATO) from the JAB, allowing you to serve federal customers.

Step 8: Continuous Monitoring

Begin ongoing compliance activities, including monthly vulnerability scans, annual security assessments, incident reporting, and system updates to maintain your authorization status.

FedRAMP compliance is mandatory for all Cloud Service Providers that handle federal data on behalf of U.S. government agencies. This includes:

• CSPs offering IaaS, PaaS, or SaaS solutions to any federal agency
• Third-party vendors partnering with government contractors who use cloud services
• Federal agencies themselves, which must ensure any cloud product they use is FedRAMP authorized

FedRAMP authorized cloud service providers who must maintain ongoing compliance through continuous monitoring and periodic reassessment

Successful organizations approach FedRAMP authorization with strategic planning and early coordination. This reduces delays and strengthens long-term compliance readiness.

• Consult 3PAOs early to identify potential gaps.
• Align internal stakeholders across key functions.
• Maintain clear and complete documentation.
• Enable continuous monitoring for control validation.

To achieve and maintain FedRAMP authorization, CSPs must complete the following:

Compile Initial FedRAMP Documentation

Prepare mandatory documents like the System Security Plan (SSP), which outlines how your system meets FedRAMP controls. Use FedRAMP templates for consistency.

Conduct a FIPS 199 Assessment

Categorize your information system’s security impact level (Low, Moderate, or High) under FIPS 199 guidelines, which determines the scope of security controls required.

Perform a 3PAO Readiness Assessment

Engage a Third-Party Assessment Organization (3PAO) to review your system for compliance gaps. This ensures you're prepared for the full authorization process.

Develop a POA&M (Plan of Action & Milestones)

Address any identified vulnerabilities or control deficiencies. Outline remediation steps and timelines in the POA&M document.

Follow the Authorization Process

Choose either the Agency-sponsored or JAB (Joint Authorization Board) path. Undergo formal security assessment, submit results, and obtain a FedRAMP Authorization to Operate.

Maintain Continuous Monitoring

After authorization, submit monthly security reports, scan results, and incident reports. Continuous monitoring ensures ongoing compliance and risk mitigation.

Modern document management systems streamline compliance documentation by automating version control, access tracking, and audit trails required for FedRAMP authorization.

• Conduct Gap Analysis: Evaluate current security posture against FedRAMP requirements
• Document SOPs: Establish standard operating procedures for all security controls
• Configure IAM Controls: Implement identity and access management systems
• Engage 3PAO: Select qualified assessment organization early in the process
• Establish Patch Management: Deploy automated systems for security updates
• Schedule Re-Assessments: Plan ongoing compliance validation activities
• Train Personnel: Ensure staff understand FedRAMP requirements and procedures

Automated data governance platforms accelerate compliance preparation by automatically classifying data, tracking access patterns, and generating audit reports required for FedRAMP authorization.

FedRAMP outlines three impact levels based on the potential impact of a security breach. Each level maps to specific controls and assessment procedures aligned with the sensitivity of the data and systems involved.

Impact Levels and Requirements:

Organizations processing highly sensitive data should consider FedRAMP High authorization requirements, which provide the most comprehensive security protections available under the framework.

Achieving FedRAMP compliance is a strategic enabler. Once authorized, cloud service providers can serve multiple government agencies without redundant approvals, significantly expanding their market reach and contract eligibility. This cross-agency trust model streamlines procurement, speeds up deployment timelines, and builds a foundation for long-term federal partnerships.

Egnyte accelerates this journey with its secure, compliant-ready content platform. With granular permission controls, robust encryption, audit-ready reporting, and data residency support, Egnyte helps providers align with FedRAMP controls from day one. 

For federal customers, Egnyte delivers an intuitive, integrated environment to manage unstructured content securely, whether it's sensitive documents, project data, or collaborative files.

FedRAMP compliance solutions do more than help you meet requirements. They show you're equipped to lead in high-trust federal environments. It's not just about eligibility. It's about demonstrating you're built for the highest level of operational readiness.

Turn FedRAMP compliance into a strategic advantage with Egnyte’s unified governance platform. Proven across federal environments, our solutions simplify authorization and automate ongoing compliance for long-term efficiency and security.

Q. What Does It Mean to Be FedRAMP Compliant?

FedRAMP compliance means your cloud service has undergone rigorous security assessment and received government authorization to process federal data.

Q. What Are the Different Paths to Achieve FedRAMP Compliance?

Organizations can pursue Agency Authorization through specific federal departments or Joint Authorization Board approval for government-wide use.

Q. Is FedRAMP Only for the Government?

While designed for federal agencies, FedRAMP compliance enables access to lucrative government contracts and demonstrates security leadership.

Q. What is the Process to Get FedRAMP Certified?

The certification process includes readiness assessment, documentation preparation, third-party security evaluation, and authorization decision requiring 12-24 months.

Q. Which Cloud Providers Are FedRAMP Certified?

Major FedRAMP authorized cloud service providers include Amazon Web Services, Microsoft Azure, Google Cloud Platform, and specialized solutions.