How to Achieve FedRAMP Compliance: Requirements and Steps

Federal agencies spend billions each year on cloud service offerings, but no provider can handle federal data without FedRAMP authorization. The Federal Risk and Authorization Management Program (FedRAMP) establishes the standardized security requirements that cloud service providers (CSPs) must meet before working with the U.S. government.

For software-as-a-service (SaaS) companies, infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) vendors, and other cloud service providers, achieving FedRAMP compliance unlocks access to federal agencies and demonstrates a mature security posture to commercial customers. This guide explains the authorization process, the required security controls, and the steps each organization must complete—from initial readiness through continuous monitoring.

What Is FedRAMP Compliance?

FedRAMP is a government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products used by federal agencies. The Office of Management and Budget (OMB) created FedRAMP to support the federal government’s transition to cloud computing and to ensure consistent, repeatable evaluations across agencies.

FedRAMP exists in part to solve a practical procurement problem. Before the program, individual agencies performed their own security assessments for every cloud vendor they worked with. This created redundant evaluations, significant cost, and inconsistent interpretations of NIST security guidance. FedRAMP’s standardized approach allows agencies to rely on a single, validated security package rather than conducting separate reviews.

FedRAMP requirements are based on the NIST SP 800-53 security controls and incorporate cloud-specific expectations that are often implemented as:

• Monitoring administrative API activity
• Auditing hypervisor changes
• Enforcing hardened configurations using CIS Benchmarks

The FedRAMP Program Management Office (FedRAMP PMO), part of the General Services Administration (GSA), oversees the program and maintains authorization packages in a secure repository. Once a cloud service offering becomes FedRAMP compliant, any agency can reuse the authorization, reducing duplicate reviews and accelerating procurement.

FedRAMP continues to evolve as federal agencies adopt more cloud-based systems and demand stronger, more consistent safeguards for sensitive data. As cybersecurity threats grow more sophisticated, the program provides a unified way for cloud vendors and government teams to evaluate risk, validate controls, and maintain a shared security baseline across environments.

Who Needs FedRAMP Authorization?

Any organization that wants to store, process, or transmit federal data through a cloud environment must obtain FedRAMP authorization. This applies to:

• SaaS applications used by federal agencies
• IaaS or PaaS cloud service providers
• Government-focused cloud products or secure cloud variants
• Providers hosting workloads for the Department of Defense (DoD), Department of Homeland Security (DHS), or other federal agencies

In practice, many CSPs pursue FedRAMP authorization not only because federal agencies require it, but because the program signals a high level of security maturity. Government agencies often evaluate vendors based on how well their cloud service protects sensitive data, supports incident reporting, and maintains continuous monitoring. FedRAMP provides a structured way to demonstrate this.

FedRAMP authorization also simplifies federal procurement. Once a cloud service is authorized, agencies can rely on an existing security package instead of conducting their own assessments. This reuse model reduces review cycles, shortens procurement timelines, and makes it easier for CSPs to engage with multiple agencies without restarting the process each time.

FedRAMP also benefits vendors outside the federal market. Many CSPs and SaaS companies find that a FedRAMP-aligned security program:

• Strengthens their security posture
• Accelerates compliance with SOC 2, ISO 27001, HIPAA, and other frameworks
• Builds customer trust in regulated industries

For many providers, the benefits extend well beyond government contracts, improving cloud security and positioning the business for long-term growth.

Step-by-Step FedRAMP Compliance Process

FedRAMP authorization requires close coordination between the CSP, the sponsoring agency, and an accredited assessment organization. The process is structured, prescriptive, and documentation-heavy, which is why most providers invest significant time preparing before formal review begins. The steps below outline the major milestones from initial planning through authorization and ongoing monitoring.

1: Authorization Path

FedRAMP has transitioned away from multiple authorization tiers and now uses a unified designation: FedRAMP Authorized. All cloud services that complete the authorization process receive the same status, regardless of how they achieved it.

Agency Authorization (ATO)

This is currently the only available path to FedRAMP authorization. A federal agency with a mission need for your cloud service sponsors the authorization process and issues an Authority to Operate (ATO) after completing a security assessment based on NIST SP 800-53 Rev 5 requirements. Once granted, this authorization can be reused across the federal government—other agencies can review your security package and issue their own ATOs without requiring a full reassessment.

Joint Authorization Board (JAB)

The Joint Authorization Board path, which previously issued Provisional Authorizations to Operate (P-ATOs), is no longer available for new cloud service providers. CSPs that previously received JAB authorizations retain their "FedRAMP Authorized" status, with the JAB designation noted as a historic detail in the FedRAMP Marketplace.

Emerging Path: FedRAMP 20x

FedRAMP recently introduced a pilot program intended to streamline the FedRAMP authorization process through:

• Machine-readable control assessments
• Automation + continuous validation and reporting
• Standardized baselines aligned to NIST SP 800-53B

CSPs should monitor this initiative as future updates may significantly shorten timelines.

2: Secure an Agency Sponsor

Most CSPs start by obtaining an agency sponsor with a mission need for their cloud service. Sponsors support the review process and coordinate with the FedRAMP PMO.

To secure a sponsor, organizations typically:

• Demonstrate strong cloud security practices
• Show alignment with FedRAMP requirements
• Present a readiness plan and timeline

CSPs without a sponsor may pursue FedRAMP Ready status by completing a Readiness Assessment Report (RAR) with a third-party assessment organization (3PAO). FedRAMP Ready indicates that a cloud service has been assessed against FedRAMP baseline requirements and is sufficiently prepared to begin the full authorization process, helping agencies evaluate readiness before committing to sponsorship.

3: Determine Your FedRAMP Impact Level and Required Controls

FedRAMP categorizes cloud services based on impact levels, which reflect the consequences of a data breach.

Low Impact

For public or non-sensitive data. Requires ~156 security controls.

Moderate Impact

For Controlled Unclassified Information (CUI) and the majority of federal workloads. Requires ~323 controls and includes requirements such as:

• U.S. persons-only access
• U.S.-based data centers
• Monthly vulnerability scanning

High Impact

For systems where compromise would cause severe harm. Requires ~410 controls.

CSPs determine their level using FIPS 199 categorization and NIST SP 800-60 guidance.

A tailored version, Low-Impact SaaS (LI-SaaS), exists for lightweight cloud applications built on already-authorized infrastructure.

4: Develop Your System Security Plan

The System Security Plan (SSP) is the core document in your FedRAMP security package. It must describe:

• System architecture and information flows
• The boundary of all in-scope information systems
• How each NIST SP 800-53 control is implemented
• Dependencies and interconnections
• Contingency and incident response procedures

FedRAMP requires the use of its standardized templates, available on fedramp.gov. The complete security package also includes:

• Security Assessment Plan (SAP)
• Security Assessment Report (SAR)
• Plan of Actions and Milestones (POA&M)
• Policies and procedures for each control family

Automation becomes essential at this stage. Platforms that centralize documentation and map controls to FedRAMP baselines help organizations streamline SSP development.

5: Implement Required Security Controls

CSPs must implement all required security controls for their impact level. These controls span 20 control families, including:

• Access Control (AC)
• Audit and Accountability (AU)
• Configuration Management (CM)
• Incident Response (IR)
• System and Information Integrity (SI)

Each control family defines how security must be designed, implemented, and monitored within a cloud service.

FedRAMP controls are more prescriptive than commercial frameworks such as SOC 2 or ISO 27001. Rather than outlining high-level expectations, FedRAMP specifies exact technical and operational parameters, including:

• Required encryption standards and key lengths
• Minimum audit log retention periods
• Mandated vulnerability scanning frequencies
• Approved configuration baseline settings

Conduct a gap assessment early to identify missing controls, incomplete implementations, and evidence shortfalls that require remediation before formal assessment.

6: Engage a Third-Party Assessment Organization

FedRAMP requires all CSPs to undergo an independent security assessment by an accredited 3PAO.

The assessment process includes:

• Technical review of the SSP
• Penetration testing
• Vulnerability scanning
• Validation of control implementations
• Creation of the Security Assessment Report (SAR)

Select a 3PAO with experience in your cloud architecture (AWS, Azure, etc.) and your target impact level. Most CSPs work with the same assessor year-over-year for continuous monitoring. A Readiness Assessment with a 3PAO is recommended for organizations still preparing for full authorization.

7: Remediate Findings and Create POA&M

After the assessment, the 3PAO documents all findings. CSPs must address them through a formal Plan of Actions and Milestones (POA&M).

Each POA&M entry must include:

• A description of the weakness
• Planned remediation steps
• Responsible owners
• Expected completion dates

Not all findings must be fixed before authorization. The sponsoring agency makes a risk-based decision about which issues can be accepted with a POA&M. Critical vulnerabilities—such as unpatched high-severity findings, missing multi-factor authentication on privileged accounts, or gaps in logging for sensitive systems—typically must be remediated before approval.

8: Submit Package and Obtain Authorization

Once remediation is complete, submit your security package to your agency sponsor. It includes:

• SSP
• SAR
• POA&M
• Supporting documentation

If approved, the agency issues an ATO. Your cloud product is then listed on the FedRAMP Marketplace, enabling reuse by other agencies.

Authorization requires continuous monitoring, including:

• Monthly vulnerability scans
• Annual assessments by a 3PAO
• Ongoing POA&M updates
• Reporting of significant system changes

Failure to maintain compliance can result in ATO revocation.

How Drata Helps Organizations Prepare For and Maintain FedRAMP Compliance

FedRAMP is one of the most demanding compliance requirements a CSP can take on. Hundreds of security controls, strict documentation standards, and real-time oversight create a heavy operational burden, especially for teams managing multiple frameworks.

Drata’s Trust Management Platform helps organizations streamline readiness and maintain ongoing compliance by centralizing and automating the core activities CSPs must complete.

• FedRAMP baselines pre-mapped to controls: Drata provides Low, Moderate, High, and LI-SaaS baselines mapped to required controls, reducing manual effort when building your compliance program.
• Continuous monitoring across controls: Drata performs continuous monitoring of security controls and notifies teams when configurations drift from expected parameters. This visibility is essential for maintaining authorization.
• Automated evidence collection: Drata integrates with AWS, Azure, GitHub, identity providers, and other cloud systems to collect evidence automatically. This automation replaces manual screenshot gathering and helps teams validate control performance.
• Streamlined documentation and dashboards: Drata organizes documentation, simplifies control management, and provides dashboards that show FedRAMP readiness at a glance, helping teams streamline audits and track progress.
• Trust Center for real-time proof: CSPs can share compliance status and security posture with agency reviewers and customers through Drata’s Trust Center.
• Cross-framework efficiencies: FedRAMP shares many controls with SOC 2, ISO 27001, HIPAA, and other frameworks. Drata’s cross-mapping lets teams implement controls once and apply them across multiple requirements. Instead of treating FedRAMP as a one-time hurdle, Drata helps teams run it as a continuous, scalable program that supports long-term growth.

FedRAMP Compliance FAQs

Answers to some of the most frequently asked questions about FedRAMP.

How long does FedRAMP authorization take?

Timelines vary by authorization path and how much preparation is done before assessment. Once controls are implemented and documentation is ready, the formal assessment typically takes:

• Agency ATO: 4–6 months
• CSP-supplied package: 2–3 months

Most CSPs also need time for pre-assessment work such as documentation, remediation, and readiness reviews. With those phases included, the full end-to-end process often takes 12–18 months.

FedRAMP 20x may shorten timelines further for qualifying cloud service providers as the pilot expands.

See How Drata Supports Your FedRAMP Journey

Drata helps cloud service providers and SaaS companies centralize controls, automate evidence collection, and maintain continuous monitoring across their FedRAMP environments. By reducing manual preparation and streamlining documentation for auditors, assessors, and agencies, Drata enables teams to stay audit-ready without pulling time away from engineering or security operations.

Book a Demo to see how Drata supports your FedRAMP journey and helps you manage authorization as an ongoing, scalable program.

How much does FedRAMP authorization cost?

Costs depend on your impact level, system complexity, and continuous monitoring needs. Industry estimates place total costs in the mid-six to low-seven figures, with one widely cited analysis reporting a median around $2.25 million. However, this source is slightly older, so expect the costs to have gone up since then.

Most CSPs plan for high six figures to just over $2 million, with lower or higher outliers based on scope.

What is the difference between FedRAMP and FISMA?

FISMA applies broadly to federal information security. FedRAMP adapts these requirements specifically for cloud service providers using a standardized assessment process.

Can I obtain FedRAMP authorization without an agency sponsor?

The traditional authorization path requires a federal agency sponsor, since the agency reviews your security package and issues the ATO.

CSPs that do not yet have a sponsor can still pursue FedRAMP Ready status through a 3PAO Readiness Assessment, or explore the FedRAMP 20x pilot, which tests a modernized path that does not follow the standard agency-sponsorship sequence.

Does FedRAMP help with other compliance frameworks?

FedRAMP is based on NIST SP 800-53, so many controls overlap with SOC 2, ISO 27001, HIPAA, and CMMC. Drata maps these overlaps, helping teams reuse work across frameworks.