For government contractors, ensuring compliance with various federal regulations isn’t just a box to check—it’s the backbone of maintaining trust, winning contracts, and safeguarding sensitive information. Among these critical frameworks is FedRAMP (Federal Risk and Authorization Management Program), an essential program for any contractor involved with cloud services.
What is FedRAMP?
FedRAMP, established in 2011, is a U.S. government program designed to standardize the process for assessing and securing cloud service providers (CSPs). It ensures that cloud products and services used by government agencies meet consistent and rigorous security standards.
FedRAMP compliance primarily applies to CSPs offering services to federal agencies. However, it also directly impacts government contractors who utilize these cloud services in their work. Contractors storing or processing Controlled Unclassified Information (CUI) or working with agencies like the Department of Defense (DoD) must ensure that their chosen cloud service providers meet FedRAMP standards.
Why is FedRAMP Important for Contractors?
For contractors working on government projects, leveraging FedRAMP-authorized cloud services is not just about compliance—it’s about building trust, gaining competitive advantage, and scaling operations securely.
Here’s why FedRAMP matters for government contractors:
- Strengthened Cybersecurity: FedRAMP ensures the cloud solutions you use conform to stringent security protocols, reducing the risk of breaches and protecting sensitive government data.
- Streamlined Procurement: Contractors relying on FedRAMP-compliant providers help agencies skip lengthy individual assessments, expediting processes and attracting more agency partnerships.
- Credibility and Market Access: FedRAMP authorization signals your commitment to cybersecurity excellence, building trust with federal clients and opening doors to lucrative opportunities.
- Alignment with Broader Standards: FedRAMP is tied to other important security mandates like DFARS 252.204-7012, NIST SP 800-171, and the Cybersecurity Maturity Model Certification (CMMC), making it integral to compliance efforts across the board.
Key Considerations for Government Contractors
FedRAMP extends beyond cloud service providers; it directly affects how contractors using those services operate. Here are three key areas of impact for contractors to consider:
Choosing the Right Cloud Service Provider
If your work involves processing, storing, or transmitting Controlled Unclassified Information (CUI), your CSP must meet specific FedRAMP standards. Using a non-compliant CSP poses significant risks, including security vulnerabilities, operational disruptions, and non-compliance penalties under regulations like DFARS or CMMC. Ensure your CSP holds a FedRAMP designation by checking the FedRAMP Marketplace.
Data Protection and Security Frameworks
FedRAMP-compliant cloud service providers are required to implement over 300 security controls, covering areas like access management, ongoing monitoring, risk mitigation, and incident response. By working with approved providers, contractors indirectly meet core security requirements for handling sensitive federal information.
Ensuring Compliance Across Contracts
For contractors working on Department of Defense (DoD) projects, adhering to FedRAMP-compliant services may also align with broader security requirements, such as NIST SP 800-171 standards and the CMMC framework.
Getting Started with FedRAMP Compliance
Now that you understand what’s at stake, here are four actionable steps for government contractors to integrate FedRAMP compliance into their operations:
- Evaluate Your Current Cloud Providers: Review your existing cloud services and verify their FedRAMP authorization status. If they are not yet FedRAMP-approved, prioritize transitioning to compliant solutions to reduce risks.
- Leverage Technology Solutions: Using integrated platforms like Deltek Costpoint GovCon Cloud Moderate (GCCM) can bring your operations in line with FedRAMP Moderate standards. These solutions automate compliance and streamline reporting, saving you time and effort.
- Partner with Experts: Navigating the complexities of FedRAMP can be daunting. Partnering with a trusted compliance and technology provider, like PCI, can simplify the process and set your business up for success.
Partner with Compliance and Security Experts
Compliance is more than checking a box—it’s about securing your future as a trusted government contractor. That’s where PCI comes in. With over 15 years of experience and expertise, PCI has partnered with Deltek to offer comprehensive solutions like Costpoint GovCon Cloud Moderate (GCCM), which is FedRAMP Moderate-Ready.
Take the guesswork out of compliance with PCI’s proven support in setting up your Costpoint system in accordance with FAR, CAS, DCAA, and CMMC standards. Together, we’ll ensure you’re always audit-ready and poised for success in the competitive GovCon market. Get started with PCI’s implementation and software support today!
