What Is FedRAMP and How Does It Work?

As cloud adoption accelerates worldwide, cybersecurity has become a critical concern, especially for federal agencies. That’s where the Federal Risk and Authorization Management Program (FedRAMP) comes in. For cloud service providers (CSPs) and third-party vendors interested in serving the U.S. Government, FedRAMP compliance is a necessity. Here, we’ll unpack what FedRAMP is, how it works, and the benefits of compliance. Additionally, for CSPs and those who use cloud-based solutions, we’ll discuss what it means. 

Understanding FedRAMP and Its Importance

FedRAMP refers to the Federal Risk and Authorization Management Program. It’s a U.S. Government–wide program that standardizes how cloud services are assessed, authorized, and continuously monitored for security.

As federal agencies began to increasingly adopt cloud technologies, there was no consistent or repeatable process to ensure that these services met the strict government security standards. Each agency had its own method of vetting providers, leading to redundancy, increased risk, and inefficient use of resources. To meet the need for better security, FedRAMP was established in 2011.

The program’s goal is simple: It ensures secure cloud adoption across federal agencies by establishing a uniform approach to risk management. Previously, CSPs had to complete separate security assessments for each government agency. This process was time-consuming and costly. FedRAMP solved this problem by allowing cloud providers to go through one standardized, robust authorization process that could be used across agencies.

What does it mean to be FedRAMP compliant? 

Being FedRAMP compliant means a cloud service has met the stringent federal security requirements outlined by the program. This includes alignment with NIST SP 800-53, a comprehensive catalog of security and privacy controls. Once authorized, the service can be used by any federal agency with confidence. 

FedRAMP compliance covers: 

• Cloud service providers (CSPs): Any cloud vendor that wants to work with the U.S. government must be compliant.
• Federal agencies: These agencies are required to use FedRAMP-compliant services for systems that process federal data.
• Third-party assessment organizations (3PAOs): These are independent firms that are accredited to conduct assessments and verify compliance. 

How FedRAMP works: The authorization process

Achieving FedRAMP authorization is a multistep process that is straightforward. However, it does require precise planning and patience, because it can take a while.

Step 1: Preparation and readiness

This phase involves internal evaluations, readiness assessments, and selecting the right FedRAMP authorization path—either through the Joint Authorization Board (JAB) or a single-agency authorization. Most CSPs will engage a 3PAO to conduct a Readiness Assessment Report (RAR), which is a high-level review of a provider’s security posture plus protocols to identify gaps before conducting a full assessment. 

Step 2: Security package development

At this stage, the CSP creates a System Security Plan (SSP) that documents how the cloud system meets FedRAMP requirements. The package includes policies, procedures, risk assessments, contingency plans, and other supporting documentation.

Step 3: Security assessment

A 3PAO conducts a full security assessment, including penetration testing, vulnerability scanning, and system configuration analysis. All findings are documented and submitted as part of the authorization package. 

Step 4: Authorization decision

FedRAMP offers two routes to authorization: 

• JAB authorization: This review is conducted by the Joint Authorization Board, which is made up of the Department of Defense (DoD), Department of Homeland Security (DHS), and the General Services Administration (GSA). This route is best for widely used services.
• Agency authorization: This authorization is sponsored by a specific federal agency and is often faster and more tailored for providers with only one federal client.

Once a CSP is authorized through one of the above paths, it is listed on the FedRAMP marketplace.

Step 5: Continuous monitoring 

Authorization isn’t a one-and-done deal. To maintain their FedRAMP-authorized status, CSPs must provide ongoing reporting, regular scans, and updates to the agencies that use their services. This ensures that they remain compliant even as their services change over time. 

Types of FedRAMP compliance

As mentioned, there are two types of FedRAMP compliance: JAB authorization and agency authorization. Choosing the right path depends on your target market.

JAB authorization

JAB authorization is for multiagency use and offers high visibility. Once authorized through the JAB, a CSP can provide services across government agencies. However, this path is often time-consuming and more complex than single agency authorization.

Agency authorization

Agency authorization is for CSPs who are focused on working with a single government agency. This path is often faster and more direct than JAB authorization. However, this method can result in a CSP losing its authorization if it loses its sponsoring agency as a client. 

FedRAMP security impact levels

FedRAMP defines three security impact levels for approved CSPs. These levels are categorized by the sensitivity of the data being processed:

• Low impact: This level includes data that would cause limited harm if compromised (e.g., publicly available data).
• Moderate impact: This includes data that could cause serious harm if it’s lost or exposed (e.g., Personally identifiable information, law enforcement data).
• High impact: This level includes data that could cause severe harm to national security or individuals (e.g., classified data, healthcare records).

Most federal systems fall under the moderate category, but providers supporting defense or critical infrastructure often aim for high baseline authorization. 

Benefits of FedRAMP compliance

FedRAMP provides numerous benefits to CSPs and the agencies they serve by standardizing and streamlining the process of securing and authorizing cloud services for federal use. 

Trust and credibility with federal agencies 

FedRAMP authorization signals to government agencies that your cloud platform meets rigorous security standards. It eliminates barriers to agency implementation and builds trust.

Standardized security across agencies

By aligning with NIST 800-53 controls, FedRAMP ensures a unified approach to security. This approach reduces risks and increases interoperability across federal systems. 

Competitive advantage in government contracts

With the rise in cloud-first infrastructure, agencies increasingly require FedRAMP-compliant vendors. Achieving compliance gives your organization a leg up in the request for proposal (RFP) and solicitation processes. 

Benefits of working with a FedRAMP-compliant CSP such as EDB

EnterpriseDB (EDB) offers a secure, FedRAMP-ready Postgres® deployment that runs on authorized cloud platforms including AWS GovCloud and Azure Government. For federal clients, this translates to faster implementation, lower risk, and higher confidence in data protection. 

Common challenges and misconceptions

FedRAMP compliance presents some challenges and misconceptions. The most common include the following: 

• Time and cost of compliance: Meeting FedRAMP compliance is a significant undertaking that demands substantial time, resources, and expertise. Many CSPs underestimate the complexity and effort required for authorization. However, the return on investment (ROI) is significant and provides access to a highly regulated market.
• Documentation burden: FedRAMP authorization requires extensive documentation, including thorough assessments, detailed security plans, constant updates, and other reports. This documentation proves that your cloud platform operates securely, but providing it demands considerable time and resources.
• Ongoing monitoring requirements: Obtaining FedRAMP authorization is just the beginning. Maintaining it involves ongoing monitoring, quarterly scans, and annual assessments to demonstrate continuous compliance as standards evolve. 

FedRAMP vs. other compliance frameworks

FedRAMP is just one of the compliance frameworks needed for government contracts. It differs from others in scope, security requirements, and authorization processes. FedRAMP primarily addresses CSPs handling federal data, while other frameworks cater to different industries and security concerns. For example, FedRAMP exceeds the requirements of frameworks such as NIST 800-53 in its specific focus on cloud security.

FedRAMP vs. FISMA

FedRAMP and the Federal Information Security Modernization Act (FISMA) are both cybersecurity frameworks. FISMA is a broad law requiring all federal agencies to implement security programs originally adopted in 2002 and updated in 2014. FedRAMP, which builds on FISMA’s foundation, is a specific program focused on standardizing security for cloud services.

EDB’s FedRAMP-ready capabilities

If you’re a federal agency representative or a contractor looking to modernize your data stack securely, EDB is your trusted partner for FedRAMP-ready PostgreSQL. Our team can accelerate your compliance journey with battle-tested tools, security best practices, and cloud-native capabilities. 

EDB provides secure PostgreSQL-based solutions that run on FedRAMP-authorized cloud platforms such as AWS GovCloud and Azure Government. This gives federal agencies the ability to deploy Postgres in a fortified, compliant environment.

Our architecture supports both moderate and high-impact baseline security controls. This makes us a fit for a wide range of federal use cases, from administrative systems to mission-critical workloads. Additionally, EDB enhances open source PostgreSQL with enterprise-grade features such as rule-based access controls, auditing and logging, and encryption at rest and in transit. 

These features align with key FedRAMP controls, helping agencies reduce risk while modernizing data infrastructure. Contact us today to learn how EDB supports secure cloud transformation for the government sector.