What Is FedRAMP ATO? Designations, Terms, and Updates

As a cloud service provider (CSP), working with federal agencies may be one of your goals. But to do so, you need to meet rigorous security standards from the Federal Risk and Authorization Management Program (FedRAMP).

FedRAMP provides a standardized framework for assessing cloud services and ensuring their safety for government use. Earning an Authorization to Operate (ATO) gives you formal approval to provide your service to federal agencies.

Here’s a guide to what FedRAMP ATO is, including the different designations, important terms, and updates that affect the certification process.

What Is FedRAMP ATO?

FedRAMP ATO is the formal approval that allows federal agencies to use a CSP’s product. This authorization makes sure software meets every FedRAMP requirement, including stringent security and compliance standards. Without ATO, federal agencies can’t use your cloud services, meaning you miss out on valuable business.

FedRAMP ATO’s main goal is to simplify security assessments and streamline security auditing. Instead of facing multiple, redundant evaluations from different federal agencies, you only need a single FedRAMP authorization from one federal agency. Once approved, your CSO appears in the FedRAMP Marketplace, and any agency can use it.

To earn FedRAMP ATO, you have to apply and go through a robust audit process, which involves four main steps:

Readiness Assessment
Pre-Authorization
Full Security Assessment
Agency Authorization Process

When CSPs previously explored FedRAMP certification, there were two paths to receive an ATO: via the Joint Authorization Board (JAB) or through an individual federal agency's sponsorship. As of 2024, there’s only one path. We'll detail the current certification process and changes below.

FedRAMP Terms and Acronyms

Understanding FedRAMP requires navigating a sea of terms and acronyms. Below is a quick reference guide to some of the most common:

Third-Party Assessment Organization (3PAO): These independent entities are accredited to perform initial and periodic assessments of CSPs.
American Association of Laboratory Accreditors (A2LA): This organization accredits 3PAOs, ensuring their qualifications.
Access Control List (ACL): ACLs define who or what can access resources in a system.
Access Control (AC): AC is one of the critical security controls required for FedRAMP compliance.
Authorizing Official (AO): The individual responsible for issuing an ATO is the AO.
Authorization to Operate (ATO): The ATO represents official approval for a CSP to operate, indicating full compliance with FedRAMP standards.
Cloud Service Provider (CSP): A CSP is an organization offering cloud computing services.
Cloud Service Offering (CSO): CSO refers to the specific cloud product or service a CSP offers.
Federal Information Processing Standards (FIPS): These standards apply to cryptographic modules required to meet FedRAMP's stringent security requirements.
Joint Authorization Board (JAB): The JAB is the primary governance group that reviews and authorizes cloud services for federal agencies.
Plan of Action and Milestones (POA&M): A POA&M is a document that outlines how a CSP will correct deficiencies identified during the FedRAMP assessment process.
Program Management Office (PMO): The office responsible for overseeing the FedRAMP program is known as the PMO.
System Integrity (SI): SI is a critical control within CSOs that ensures data integrity, preventing unauthorized modification or destruction of information.

FedRAMP Updates

FedRAMP continues to evolve to meet the growing needs of federal agencies and CSPs. Here are a few updates worth noting:

One Authorization Path

On July 26, 2024, the White House Office of Management and Budget (OMB) released memo M-24-15, titled “Modernizing the Federal Risk and Authorization Management Program (FedRAMP).” This memo introduced strategic goals to transform FedRAMP’s operations and accelerate secure cloud adoption—mainly through shifting from two authorization paths (JAB or Agency) to one (FedRAMP Authorized).

This change reduces administrative overhead and streamlines the FedRAMP process, ultimately putting more CSOs in the FedRAMP Marketplace.

Transition for JAB-Authorized CSPs

As part of the move from two paths to one, FedRAMP took action to ensure that any continuous monitoring (ConMon) from JAB wouldn’t experience interruptions. By transitioning ConMon activities from JAB to agencies like the Department of Defense (DOD) or Department of Homeland Security (DHS), FedRAMP avoided oversight lapses and continued keeping tabs on security measures as normal.

Support for Priority CSPs

The JAB previously prioritized certain CSPs to get them authorization faster—mostly those with valuable services likely to meet federal needs. But the transition interrupted the process. FedRAMP continued to communicate with those CSPs and keep them high on the list of providers moving toward authorization. This focus avoided losing valuable resources during the transition.

FedRAMP Designations for CSOs

The FedRAMP PMO now defines three official designations as CSOs progress through the authorization process:

FedRAMP Ready

The FedRAMP Ready label means that a 3PAO has confirmed that a CSO has the proper security measures and that the FedRAMP PMO has reviewed and approved the readiness assessment report (RAR). This designation indicates that you’re ready for full authorization.

FedRAMP In Process

FedRAMP In Process indicates that you’re actively working toward FedRAMP Authorization. To achieve this designation, a federal agency has to sponsor you. Then, your agency partner and a 3PAO submit an assessment of your security measures, with confirmation that your systems are fully operational.

Being In Process shows progress and assures federal agencies you’re nearing full compliance. You demonstrate willingness to comply with federal requirements, opening up potential partnerships before achieving full authorization.

FedRAMP Authorized

The FedRAMP Authorized designation means that you’ve completed all required security assessments and have been granted an ATO by a federal agency. This milestone validates your security posture and demonstrates your CSO’s compliance with stringent federal security controls.

FedRAMP Authorization With Legit Security

Achieving FedRAMP compliance involves navigating complex requirements, from understanding the JAB process to maintaining continuous monitoring. Legit Security is here to help simplify that journey for you.

Legit can map your application security guardrails to FedRamp regulations and identify security gaps to obtain compliance. We then provide real-time monitoring and alerts on compliance violations.

Want to see how Legit Security can help with your FedRAMP journey? Contact us today to learn more.