FedRAMP authorization can unlock access to federal markets and long-term growth for cloud service providers (CSPs), but it comes with a range of costs that organizations must carefully evaluate. Whether you’re a startup hoping to land your first federal contract or an established company looking to expand into higher-impact services, understanding the full financial picture of FedRAMP is essential.
This guide explores the typical costs involved in preparing for, achieving, and maintaining FedRAMP authorization, breaking them down by authorization level and highlighting opportunities to streamline your investment.
Understanding the cost of FedRAMP Authorization
The cost of FedRAMP authorization can vary significantly depending on the level of authorization (Low, Moderate, or High), your current security posture, and whether you’re pursuing a traditional path or participating in the new FedRAMP 20x Phase One Pilot program.
While the FedRAMP PMO does not publish standard cost estimates, industry averages and case studies can provide a useful benchmark. In general, organizations can expect to spend anywhere from $250,000 to $2 million or more over the course of authorization and maintaining compliance over time.
A few main factors will influence your organization’s total FedRAMP costs:
- Baseline level (Low, Moderate, High)
- Reliance on consultants vs. internal resources
- Size and complexity of your system boundary
- Remediation and implementation costs
- 3PAO assessment fees
- Ongoing monitoring and annual assessment costs
Let’s look more closely at typical cost drivers across different FedRAMP authorization levels.
FedRAMP Low Authorization Costs
FedRAMP Low is typically the most accessible level of authorization and is often the starting point for CSPs entering the federal market. This level is intended for cloud systems that handle less sensitive information and where the impact of a breach would be limited. That said, even FedRAMP Low requires significant planning, documentation, and coordination with a 3PAO.
Preparation costs
Organizations pursuing FedRAMP Low authorization typically start with a readiness assessment or gap analysis, either internally or with the help of a 3PAO. These services generally range from $30,000–$80,000 depending on the level of support provided. Remediation costs vary widely, depending on how many controls you already meet.
3PAO assessment
A third-party security assessment for FedRAMP Low authorization often costs between $100,000–$250,000. This includes the Security Assessment Plan (SAP), testing, documentation, and delivery of a Security Assessment Report (SAR).
Ongoing maintenance
After receiving your ATO, you’ll need to submit monthly continuous monitoring reports and conduct annual assessments. Annual costs for continuous monitoring and policy/document updates typically range from $50,000–$150,000.
FedRAMP 20x Phase One Pilot
The FedRAMP 20x pilot offers an alternate path to a 12-month FedRAMP Low authorization using a reduced control set called Key Security Indicators (KSIs). This streamlined process can significantly reduce costs, but total expenses are still emerging as the pilot scales. Participants may still incur 3PAO, platform, and consulting fees.
FedRAMP Moderate Authorization Costs
FedRAMP Moderate is the most commonly pursued authorization level and applies to systems that store or process Controlled Unclassified Information (CUI). The controls are more rigorous and the overall effort more involved, requiring substantial planning, implementation, and testing.
Preparation costs
FedRAMP Moderate includes 325+ security control requirements aligned with NIST 800-53 Rev. 5. Gap assessments for Moderate typically cost between $50,000–$150,000 depending on the scope and whether internal or external support is used. Remediation expenses can easily reach six figures and may include policy development, configuration management updates, infrastructure changes, and staff training.
3PAO assessment
Full Moderate assessments by a 3PAO range from $150,000–$300,000 or more. These fees may rise as demand grows and the pool of available 3PAOs is stretched.
Ongoing maintenance
You’ll need to maintain your Plan of Action and Milestones (POA&M), perform continuous monitoring, submit regular documentation, and coordinate annual reassessments. Annual maintenance costs for FedRAMP Moderate can range from $75,000–$200,000 depending on how much is automated and whether internal teams manage compliance.
FedRAMP High Authorization costs
FedRAMP High is designed for cloud services that store or process the federal government’s most sensitive unclassified data. As a result, the security requirements are significantly more stringent, and the cost of preparing for and achieving authorization increases accordingly.
Preparation costs
High-impact systems require an even more robust security program. You may need to segment system components, create isolated enclaves, and implement advanced security controls. Gap assessments and remediation can range from $150,000 to $500,000 or more, depending on your current environment and support needs.
3PAO assessment
3PAO assessments for FedRAMP High may cost between $250,000–$500,000 due to the increased complexity of testing and documentation. Organizations operating in sectors like healthcare, defense, or financial services should plan for higher assurance expectations.
Ongoing maintenance
Annual maintenance for FedRAMP High typically costs $100,000–$300,000 depending on system complexity and internal capacity. Many organizations at this level also work with a vCISO or Managed Security Service Provider (MSSP), adding additional monthly fees.
FedRAMP Requirements Checklist
Our FedRAMP Requirements Checklist provides a high-level overview of the technical and security requirements you’ll need to implement to meet the security requirements of the Low, Li-SaaS, Moderate, and High baselines.
5 ways to lower the cost of FedRAMP Authorization
There’s no denying that FedRAMP is a heavy and expensive lift. Between preparation, assessment, documentation, and continuous monitoring, authorization can require a significant investment of time and resources. But it’s also an essential gateway to unlocking new revenue opportunities, landing agency contracts, and building long-term trust in the federal marketplace.
Fortunately, automation platforms like Secureframe can significantly reduce the cost and time required to achieve and maintain FedRAMP compliance. By streamlining manual work, providing expert guidance, and integrating with your tech stack, Secureframe makes it easier to navigate the FedRAMP journey from start to finish.
- Avoid redundant consulting costs
Our internal team of FedRAMP experts, including former PMO staff, assessors, and auditors, can help you build a clear roadmap without paying hourly for every question or update. - Automate documentation and evidence collection
Secureframe integrates with your existing cloud infrastructure and tools to continuously collect evidence, track remediation, and maintain compliance with FedRAMP controls. - Streamline policy and SSP development
With pre-built templates and document automation, you can avoid hiring external consultants to develop hundreds of pages of FedRAMP documentation. - Track and manage your POA&M
Our platform helps you keep your Plan of Action and Milestones accurate and audit-ready while reducing the need for manual updates. - Prepare for the FedRAMP 20x pilot
Secureframe offers out-of-the-box support for the KSI framework and can guide you through eligibility, onboarding, and preparation for submission with one of our 3PAO partners.
To learn more about how Secureframe simplifies FedRAMP compliance, schedule a personalized demo with one of our experts.
Streamline FedRAMP compliance
