If your company wants to sell cloud products or services to the U.S. government, achieving FedRAMP authorization is non-negotiable. And for years, the recommended first step has been pursuing the FedRAMP Ready designation — a formal recognition that your system has the foundational security elements in place to begin the authorization process.
FedRAMP Ready gets your product listed on the FedRAMP Marketplace, increasing visibility to federal customers searching for compliant or near-compliant cloud solutions. It signals to agencies and investors that you’re serious about compliance and prepared to move forward.
But that’s about to change.
FedRAMP Ready is being retired
Effective July 28, 2026, FedRAMP will stop accepting new submissions for FedRAMP Ready. The designation is being phased out to prevent unnecessary investment and make room for a new certification path. Here’s what the transition looks like:
- FedRAMP Ready will be renamed “Legacy FedRAMP Ready.”
- No new FedRAMP Ready submissions will be accepted after July 28, 2026.
- Existing Legacy FedRAMP Ready cloud services will remain listed until the later of November 17, 2026 or the expiration of their most recent yearly assessment.
- Legacy FedRAMP Ready services will retain their legacy impact level and will not be FedRAMP Certified.
If you were planning to pursue FedRAMP Ready as your first milestone, that path is closing. But the underlying need — understanding where your system stands before committing to the full authorization process — hasn’t gone away. It’s just handled differently now.
What to do instead: The FedRAMP Gap Analysis
A FedRAMP Gap Analysis fills the role that FedRAMP Ready used to play. It’s a structured review of your system’s current security posture measured against the FedRAMP controls required for your target baseline. It identifies where you meet requirements, where you fall short, and what you need to fix before engaging a Third Party Assessment Organization (3PAO) for your formal assessment.
Think of it as a roadmap. Rather than going into the authorization process blind and discovering gaps mid-assessment — when they’re expensive and time-consuming to fix — a gap analysis surfaces those issues early so you can address them on your own terms.
What does a FedRAMP Gap Analysis cover?
A thorough gap analysis evaluates your system against the full set of security controls for your target baseline:
The analysis typically reviews core areas such as data encryption, boundary protection, identity and access controls, multi-tenancy risk management, incident response capabilities, and continuous monitoring readiness. The output is a detailed report showing which controls you’ve satisfied, which have partial implementation, and which need to be built from scratch.
What is a 3PAO and why do you need one?
A Third Party Assessment Organization (3PAO) is an independent, accredited evaluator that formally assesses your system against FedRAMP requirements. You’ll need a 3PAO to complete your authorization package and earn your Authority to Operate (ATO).
A gap analysis isn’t a replacement for a 3PAO assessment — it’s what you do before engaging one. By closing gaps in advance, you reduce the risk of findings during your formal evaluation, avoid costly reassessments, and shorten your overall timeline to authorization.
What does a FedRAMP Gap Analysis cost?
The cost of a FedRAMP Gap Analysis through traditional consulting varies by baseline. Expect to spend approximately $75K for FedRAMP Low, $100K for FedRAMP Moderate, and $200K or more for FedRAMP High. And if your system isn’t prepared, you’ll likely spend even more on technical rework to close the gaps that surface.
That’s why we recommend understanding your compliance posture as early as possible. The sooner you identify gaps, the more time and budget you preserve for the work that actually matters — implementing controls and building your authorization package.
NYLE offers a FedRAMP Gap Analysis covering all three FedRAMP baselines — Low, Moderate, and High. Rather than scoping and paying for each baseline separately, you get a comprehensive view of where your system stands across the board, so you can make informed decisions about which authorization path to pursue.
How to get FedRAMP certified: Why a Gap Analysis is now the smartest first step
With FedRAMP Ready going away, the path to authorization is more direct — but also less forgiving. There’s no longer an intermediate designation to buy time or signal intent. Organizations that invest in a gap analysis before engaging a 3PAO will be better positioned to move efficiently through the FedRAMP In Process phase and reach full authorization without costly surprises.
A gap analysis gives you clarity on three things: what’s already in place, what needs work, and how much effort it will take to get there. That’s the foundation for a realistic timeline, an accurate budget, and a successful authorization outcome.
Frequently Asked Questions
What is the FedRAMP process?
The FedRAMP process is a series of milestones — typically FedRAMP Ready, FedRAMP In Process, and FedRAMP Authorized — that a cloud product moves through to achieve full government authorization.
How long does FedRAMP Ready last?
The FedRAMP Ready designation is valid for 12 months. If you don’t advance to In Process or Authorized status within that window, the designation expires and you’ll need to reapply.
Can I skip FedRAMP Ready and go straight to In Process?
Yes. FedRAMP Ready is optional. Some organizations move directly into the In Process phase once they’ve secured an agency sponsor. However, pursuing Ready first can help surface gaps early and increase your visibility on the FedRAMP Marketplace.