What Does FedRAMP Authorization Actually Cost?
FedRAMP is the most expensive compliance framework most companies will encounter. However, the FedRAMP Rev 5 updates and the OSCAL automation initiative have begun reducing costs.
| Impact Level | Estimated Cost | Timeline | Controls |
|---|---|---|---|
| Li-SaaS (Low Impact SaaS) | $150,000 – $350,000 | 6 – 12 months | ~125 |
| Low Baseline | $250,000 – $500,000 | 9 – 18 months | 156 |
| Moderate Baseline | $500,000 – $1,500,000+ | 12 – 24 months | 325 |
| High Baseline | $1,000,000 – $3,000,000+ | 18 – 36 months | 421 |
Costs include 3PAO assessment ($100,000 – $500,000+), continuous monitoring tooling ($50,000 – $150,000/year), and significant engineering effort for control implementation.
Budget Tier Recommendations
Startup budget (under $250,000): Pursue Li-SaaS if your product qualifies. It has a significantly reduced control set and faster timeline. Use an automation platform to manage OSCAL-formatted documentation.
Mid-market ($250,000 – $750,000): Low baseline with an automation platform and a mid-tier 3PAO. Focus on infrastructure-as-code to automate control implementation.
Enterprise ($750,000+): Moderate or High baseline. Budget for a dedicated FedRAMP team, a large 3PAO, and ongoing ConMon staffing.
Our Recommendation
For the cheapest path, we recommend LowerPlane — starting at $4,000/year for the base platform, it generates OSCAL-formatted System Security Plans, automates continuous monitoring evidence collection, and maps controls to FedRAMP baselines. Customers typically reduce 3PAO assessment costs by 20 – 30% through pre-organized, machine-readable evidence packages.
Where to Cut Costs
- Qualify for Li-SaaS. If your SaaS does not store sensitive PII and meets the criteria, Li-SaaS is dramatically cheaper than a full Low authorization.
- Use FedRAMP-authorized IaaS. Building on AWS GovCloud or Azure Government inherits hundreds of controls from the underlying IaaS authorization.
- Automate SSP generation. The System Security Plan is often 300+ pages. OSCAL-based automation saves months of documentation labor.
- Start with a single agency sponsor. The agency authorization path avoids the JAB queue and can be faster and cheaper.
Where Not to Cut Costs
- 3PAO selection. FedRAMP-recognized 3PAOs vary in quality. A rejected assessment package costs six figures to redo.
- Continuous monitoring. FedRAMP requires ongoing monthly vulnerability scanning, annual assessments, and incident reporting. Budget for this from day one.
- POA&M management. Open Plan of Action and Milestones items must be tracked and resolved on schedule.
Get Started
Try LowerPlane → and reduce your FedRAMP authorization costs.