FedRAMP, the Federal Risk and Authorization Management Program, is the US government’s standardized program for assessing and authorizing the security of cloud services used by federal agencies. A cloud service that is FedRAMP authorized has been rigorously evaluated against federal security controls, so agencies can use it with confidence. If you want to sell a cloud product to the federal government, FedRAMP is usually the gate you have to pass.
- 31%Vulnerability exploitation overtook stolen credentials as the top way attackers get in for the first time, driving 31% of confirmed breaches, per Verizon's 2026 Data Breach Investigations Report, which analyzed more than 22,000 confirmed breaches across 145 countries.
- $10.22MThe average cost of a data breach in the United States hit a record $10.22 million in 2025, even as the global average fell to $4.44 million, according to IBM's Cost of a Data Breach Report.
- 139.7MMore than 139.7 million individuals had protected health information exposed across 772 large breaches reported in 2025, the a record number of large breaches, per the HHS Office for Civil Rights HIPAA breach portal.
- 500+The FedRAMP Marketplace lists 500+ cloud services with a full FedRAMP Authorization, giving federal agencies a vetted baseline of NIST based security controls to rely on, per the FedRAMP Marketplace.
Why FedRAMP exists
Before FedRAMP, every agency assessed cloud services on its own, which was slow and inconsistent. FedRAMP created one standard so a cloud service can be authorized once and reused across agencies, the principle of “do once, use many times.” It is built on the security controls in NIST 800-53, the federal security standard.
The impact levels
FedRAMP sorts systems by the impact if their data were compromised:
– Low: limited impact (often public-facing, low-sensitivity data).
– Moderate: serious impact (the most common level; covers most sensitive but unclassified federal data).
– High: severe impact (law enforcement, emergency services, financial, and health data).
The higher the level, the more controls and scrutiny apply.
How a service gets authorized
At a high level, a cloud service is assessed by an accredited third-party assessor against the FedRAMP controls, documented thoroughly, and then granted an authorization, either through an agency sponsor or the FedRAMP program board. Maintaining it requires continuous monitoring; FedRAMP is not a one-time stamp.
What FedRAMP means for building software
If your cloud product targets federal agencies, FedRAMP shapes how it must be built: strong access controls, encryption, logging, incident response, and extensive documentation, all mapped to federal controls. Designing for these from the start is far cheaper than retrofitting. Building toward FedRAMP is a significant, deliberate effort, and it is best planned early. (See What Is Custom Software Development.)
Note: a FedRAMP authorization belongs to the cloud service offering that is assessed. A development partner builds software to align with FedRAMP requirements; the authorization itself is pursued and held by the service owner.
FedRAMP FAQs
What is FedRAMP in simple terms?
The US government’s standardized security program for cloud services, so federal agencies can use cloud products that have been rigorously vetted.
What are the FedRAMP impact levels?
Low, Moderate, and High, based on the impact if the data were compromised. Moderate is the most common.
Is FedRAMP required to sell cloud software to the government?
For cloud services used by federal agencies, generally yes. It is usually the gate you have to pass.
Can you build software toward FedRAMP requirements?
Yes. We build software with the access controls, encryption, logging, and documentation FedRAMP requires. The authorization is pursued and held by the service owner; we engineer the software to align with it.
Closing CTA
Targeting federal agencies with a cloud product? Request a free consultation and we will help you build toward FedRAMP from the start.
Related guides
- What Is Custom Software Development?
- How Much Does Custom Software Development Cost in 2026?
- Custom Software vs Off-the-Shelf Software: How to Choose
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