StateRAMP and FedRAMP Explained for Contractors

Cloud compliance for government contractors. What you need to know about achieving and maintaining FedRAMP or StateRAMP authorization.

What Is FedRAMP and Why Does It Matter?

The Federal Risk and Authorization Management Program (FedRAMP) is the government's standardized approach to security assessment for cloud products and services. If you're a cloud service provider (CSP) selling to federal agencies, or a government contractor using cloud services to process federal data, FedRAMP authorization is mandatory.

Think of FedRAMP as the government's seal of approval for cloud security. Without it, your cloud solution cannot be used to store, process, or transmit federal information.

📊 Key Numbers

As of 2026, there are 350+ FedRAMP-authorized cloud services. The authorization process takes 3–18 months and costs $500K–$3M+ depending on complexity. Once authorized, continuous monitoring is required.

FedRAMP Impact Levels: Which One Do You Need?

Impact Level	Data Sensitivity	Security Controls	Common Use Cases
Low	Public data	125 controls	Public websites, non-sensitive collaboration
Moderate	Sensitive but unclassified	325 controls	Most government SaaS, CRM, email (80% of FedRAMP authorizations)
High	Highly sensitive / law enforcement	421 controls	DoD systems, financial, healthcare, law enforcement

Most contractors need Moderate impact level. If you're working with DoD Controlled Unclassified Information (CUI), you likely need High — and you should also consider CMMC compliance.

StateRAMP: FedRAMP for State and Local Government

StateRAMP applies the same security framework to state and local government cloud procurement. If you're selling cloud services to Texas state agencies, school districts, or municipalities (including the City of San Antonio), StateRAMP authorization demonstrates your security posture.

Key differences from FedRAMP:

Lower cost: StateRAMP authorization typically costs $50K–$200K vs. FedRAMP's $500K+
Faster timeline: 3–6 months vs. FedRAMP's 6–18 months
Reciprocity: A FedRAMP-authorized service automatically qualifies for StateRAMP, but not vice versa
Growing adoption: Texas, Ohio, and 30+ states now accept or require StateRAMP

For Government Contractors: What You Need to Do

If you're a contractor (not a CSP), you don't need FedRAMP authorization yourself. But you must ensure your cloud tools are FedRAMP-authorized. This means:

Inventory your cloud services. List every SaaS, PaaS, and IaaS tool that touches government data — email, file sharing, project management, CRM, accounting.
Check the FedRAMP Marketplace. Verify each service has active FedRAMP authorization at the appropriate impact level at marketplace.fedramp.gov.
Replace non-authorized tools. Common swaps: Google Workspace → Microsoft 365 GCC, Dropbox → OneDrive GCC, Slack → Microsoft Teams GCC.
Document your cloud posture. Include cloud service authorization status in your System Security Plan (SSP) for CMMC or NIST 800-171 compliance.

Common FedRAMP-Authorized Alternatives

Consumer Tool	FedRAMP Alternative	Impact Level
Microsoft 365	Microsoft 365 GCC / GCC High	Moderate / High
AWS	AWS GovCloud	High
Google Workspace	Google Workspace (FedRAMP Moderate)	Moderate
Salesforce	Salesforce Government Cloud	Moderate
Zoom	Zoom for Government	Moderate

Need Help with Government IT Compliance?

Hatty AI helps defense contractors and government service providers navigate FedRAMP, CMMC, and NIST 800-171 compliance.

Schedule a Compliance Consultation

Frequently asked questions

What is FedRAMP?

The Federal Risk and Authorization Management Program (FedRAMP) is the government's standardized approach to security assessment for cloud products and services. Cloud services must be authorized to store, process or transmit federal information.

What is StateRAMP?

StateRAMP is FedRAMP for state and local government. The post explains how it parallels the federal program.

How long does FedRAMP authorization take?

The post says authorization takes 3 to 18 months and can cost $500K to $3M or more, depending on complexity. Continuous monitoring is required afterward.

FedRAMP & StateRAMP Explained