The Federal Risk and Authorization Management Program (FedRAMP®) is the U.S. government’s standardized process for assessing the security of cloud products and services. If your system will store, process, or transmit federal government data, it must meet FedRAMP requirements. No agency can use your cloud service without it.

FedRAMP ensures that cloud providers meet consistent, rigorous government security standards. It’s not optional. If you’re a cloud-based startup looking to work with U.S. government customers, FedRAMP compliance is a prerequisite.

Rather than apply a one-size-fits-all model, FedRAMP defines three security baselines — Low, Moderate, and High — based on how sensitive the data is and how disruptive a breach would be. Most cloud-based products align with the Moderate baseline, but the right fit depends on your product’s role in your customer’s mission.

Whether you’re building something new or adapting an existing platform, understanding FedRAMP early can save time, reduce cost, and prevent strategic rework.

tl;dr - If you want your cloud product to serve the federal market, FedRAMP is the gate.

The Federal Risk and Authorization Management Program (FedRAMP®) defines three security baselines—Low, Moderate, and High—based on how sensitive a system’s data is and how disruptive it would be if the system were compromised.

Each baseline includes a specific set of security and privacy controls from the National Institute of Standards and Technology (NIST) Special Publication 800-53, Revision 5. NIST 800-53 is the U.S. government’s authoritative source for evaluating the security posture of cloud systems.

Here’s how the FedRAMP baselines compare:

• FedRAMP Low: 156 controls

• FedRAMP Moderate: 323 controls

• FedRAMP High: 410 controls
  
  

FedRAMP uses the Federal Information Processing Standards (FIPS) Publication 199 to determine which baseline a system must meet. FIPS 199 assesses impact levels across three key areas: confidentiality, integrity, and availability.

If you don’t feel like reading FIPS 199, you can get a general sense of what security baseline most likely applies to your cloud service offering by answering three core questions:

1. What happens if your system goes down?

• Low: Minor inconvenience—users can wait or find workarounds

• Moderate: Significant disruption—operations are impaired, but the organization can still function

• High: Mission-critical failure—the organization cannot perform essential functions, or safety could be affected
  
  

2. What’s the impact if sensitive data is leaked?

• Low: Limited harm—some embarrassment, minor financial loss, or exposure of routine information

• Moderate: Serious consequences—financial loss, competitive harm, or privacy violations

• High: Severe damage—reputational fallout, legal exposure, or risk to public safety
  
  

3. What if someone maliciously alters your data?

• Low: Minor impact—issues are easily detected and corrected

• Moderate: Significant problems—business decisions are affected, or regulatory issues arise

• High: Severe consequences—mission failure, safety risks, or major financial loss

FIPS 199 uses the “high-water mark” method. That means your overall baseline is determined by the highest impact level across confidentiality, integrity, and availability. If even one area is rated High, your system must meet the FedRAMP High baseline.

Choosing the correct FedRAMP baseline early is critical. It helps you scope the right level of effort, estimate timelines more accurately, and avoid costly rework later.