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FedRAMP Moderate Equivalency (also called FedRAMP Moderate Equivalent) is a DoD-defined alternative compliance pathway for cloud service offerings (CSOs) used by Defense Industrial Base (DIB) contractors to store, process, or transmit Covered Defense Information (CDI) or Controlled Unclassified Information (CUI). It stems directly from DFARS clause 252.204-7012 and was clarified in a December 21, 2023, DoD CIO memorandum.
Why It Exists and Its Role in CMMC
DFARS 252.204-7012 requires that any external cloud service provider (CSP) handling CDI/CUI must meet security requirements equivalent to the FedRAMP Moderate baseline (plus DFARS cyber incident reporting rules in paragraphs (c)–(g)). The CMMC program (especially Levels 2 and 3, which protect CUI) incorporates this requirement: if your organization uses a CSP for CUI, that CSP must be either FedRAMP Moderate Authorized (listed on the FedRAMP Marketplace) or FedRAMP Moderate Equivalent.
During a CMMC assessment, the C3PAO (for Level 2) or DIBCAC (for higher levels) will review the CSP’s Body of Evidence (BoE) to confirm the equivalency claim. This is part of validating your overall CMMC compliance.
Lazarus Alliance, an accredited FedRAMP Third-Party Assessment Organization (3PAO), will coordinate directly with your organization to prepare for and schedule your official FedRAMP Moderate Equivalency assessment. Upon successful completion of the independent 3PAO assessment, Lazarus Alliance will provide a complete Body of Evidence (BoE).
Federal Risk and Authorization Management Program (FedRAMP)
FedRAMP is a U.S. government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services used by federal agencies.
Established in 2011 and mandated by the Office of Management and Budget (OMB), FedRAMP eliminates duplicative security testing by creating a “do once, use many times” framework so that once a cloud service is authorized under FedRAMP, any federal agency can reuse that authorization package instead of conducting its own full assessment.
What “Equivalent” Actually Means
The 2023 memo closed earlier loopholes and set a high bar. A CSO qualifies as FedRAMP Moderate Equivalent only if it meets all of the following:
- Achieves 100% compliance (zero control-related findings) with the latest FedRAMP Moderate security control baseline (NIST SP 800-53 Rev. 5 Moderate, ~325 controls).
- Is assessed by a FedRAMP-recognized and accredited Third-Party Assessment Organization (3PAO) using FedRAMP templates.
- Provides a complete Body of Evidence (BoE) to the contractor, which typically includes:
- System Security Plan (SSP)
- Security Assessment Plan (SAP)
- Security Assessment Report (SAR) performed by the 3PAO
- Plan of Action and Milestones (POA&M) — note: continuing operational POA&Ms are allowed after the assessment, but the initial 3PAO assessment must show full compliance with no open control findings.
The CSP must also comply with DFARS 252.204-7012 incident reporting, malicious software handling, media protection, forensic access, and damage assessment requirements.
FedRAMP Moderate Equivalency Audit Timeline: What to Expect with Lazarus Alliance
Below are the real-world average timelines seen in 2024–2026 with experienced 3PAOs like Lazarus Alliance:
Detailed FedRAMP Moderate Equivalency Audit Timeline
Lazarus Alliance follows this structured 6-phase process to help Cloud Service Providers (CSPs) with an existing FedRAMP Moderate authorization efficiently achieve Moderate Equivalency (Agency ATO reuse, DoD IL4/IL5 mapping, StateRAMP, or other equivalency pathways) using A2LA-accredited rigor and automation.
| Phase | Activities | Duration | Deliverables |
|---|---|---|---|
| Phase 0 – Pre-Engagement & Decision | Risk-free consultation, review existing FedRAMP Moderate package, determine target equivalency path (Agency, DoD IL4/IL5, StateRAMP, etc.), boundary confirmation, and gap scoping. | 1 week | Signed engagement agreement, equivalency roadmap, updated boundary diagram, and path confirmation. |
| Phase 1 – Scoping & Readiness Assessment | Inheritance analysis of existing Moderate controls, identification of additional equivalency requirements, SSP tailoring, and documentation review. | 1–2 weeks | Inheritance mapping report, readiness gap analysis, tailored SSP outline for equivalency. |
| Phase 2 – Gap Assessment & Remediation Planning | Full delta analysis of additional controls, policy/procedure updates, POA&M refinement, and evidence strategy using Cybervisor™ automation. | 2–3 weeks | Detailed equivalency gap report, prioritized remediation plan, updated POA&M, evidence collection roadmap. |
| Phase 3 – Evidence Collection & Testing | Verification of inherited + new controls, automated + manual testing, penetration testing support, and evidence repository build for equivalency. | 3–4 weeks | Comprehensive evidence package, test results, updated POA&M, ready-to-submit control statements. |
| Phase 4 – Reporting & Submission Package | Final SSP/SAR updates for equivalency, package assembly, agency coordination, and submission support. | 1–2 weeks | Complete equivalency authorization package (updated SSP, SAR, POA&M), submission-ready artifacts. |
| Phase 5 – Authorization & Continuous Monitoring | Agency support, equivalency acceptance coordination, Continuous Monitoring (ConMon) program alignment, ongoing automation with Continuum GRC and Cybervisor™. | 2–3 weeks initial setup (then ongoing) | Equivalency acceptance confirmation, approved ConMon plan, automated reporting dashboards, and a long-term compliance maintenance program. |
Why clients finish faster with Lazarus Alliance: Our A2LA-accredited assessors (ISO/IEC 17020 #3822.01), Cybervisor™ automation platform, Continuum GRC technology, and Proactive Cyber Security® methodology reduce typical FedRAMP Moderate Equivalency timelines by 40–50% while delivering superior evidence quality and faster agency acceptance.
Lazarus Alliance, an accredited FedRAMP Third-Party Assessment Organization (3PAO), is historically about 46% faster than traditional 3PAO firms meaning that your FedRAMP Moderate Equivalency can be achieved in 3–6 months - Michael Peters, CEO & Founder
FedRAMP Moderate: Authorized vs. Moderate Equivalent
FedRAMP Moderate Authorized vs. Moderate Equivalency Comparison
Lazarus Alliance helps Defense Industrial Base (DIB) contractors and Cloud Service Providers clearly understand the key differences between full FedRAMP Moderate Authorization and FedRAMP Moderate Equivalency for meeting DFARS 252.204-7012 and CMMC compliance requirements.
| Aspect | FedRAMP Moderate Authorized | FedRAMP Moderate Equivalent |
|---|---|---|
| FedRAMP Marketplace Listing / ATO | Yes (Full Authorization) | No |
| Requires Federal Agency Sponsor | Yes | No |
| Security Controls & 3PAO Assessment | 100% compliance with FedRAMP Moderate baseline | 100% compliance with FedRAMP Moderate baseline |
| Assessed By | FedRAMP-recognized 3PAO | FedRAMP-recognized 3PAO |
| Acceptable for CMMC / DFARS 252.204-7012 | Fully compliant | Fully compliant |
| Ongoing Monitoring & Oversight | FedRAMP PMO + Continuous Monitoring | Contractor + C3PAO/DIBCAC review of Body of Evidence (BoE) |
| Best For | Organizations seeking maximum marketplace recognition | CSPs serving DoD contractors without pursuing a full FedRAMP ATO |
Key Takeaway with Lazarus Alliance: Both pathways deliver identical security control rigor for CUI/CDI protection, but Moderate Equivalency gives CSPs a faster, sponsor-free route while our A2LA-accredited team and Cybervisor™ automation ensure seamless CMMC readiness and agency acceptance.
Equivalency gives CSPs (especially those not pursuing full FedRAMP) a viable path to serve DoD contractors without obtaining a federal Authority to Operate (ATO). However, it does not make the CSP “FedRAMP Authorized.”
Frequently Asked Questions
FedRAMP Moderate Equivalency allows Cloud Service Providers (CSPs) that already hold a FedRAMP Moderate authorization to reuse their existing Body of Evidence (BoE) for faster Agency ATOs, DoD IL4/IL5 mapping, StateRAMP, or other government pathways without starting from scratch. CSPs targeting DoD contracts (IL4/IL5), StateRAMP compliance, or rapid agency adoption benefit most. If you already have FedRAMP Moderate and want to expand into defense, state government, or additional federal agencies, Moderate Equivalency is the fastest route to new authorizations. s. Standard FedRAMP Moderate is a full baseline authorization (325 controls). Moderate Equivalency reuses your existing Moderate package and only requires delta-gap analysis for additional controls required by the new pathway (DoD, StateRAMP, etc.), dramatically shortening the timeline. With Lazarus Alliance’s A2LA-accredited 3PAO team and Cybervisor™ automation, most clients complete FedRAMP Moderate Equivalency in 3–6 months — 40–50% faster than traditional 3PAO firms. Our proprietary Cybervisor™ automation platform, Continuum GRC technology, and Proactive Cyber Security® methodology reduce manual evidence collection and testing by up to 50%, while our A2LA ISO/IEC 17020 accreditation (#3822.01) ensures immediate agency acceptance. Benefits include 40–50% faster time-to-market, significantly lower costs, reuse of existing evidence, stronger positioning for DoD and state contracts, and a quicker path to additional revenue from government customers. Costs vary based on scope and existing maturity, but Lazarus Alliance’s streamlined delta approach typically saves clients 40–50% compared to a full new authorization. Contact us at 888-896-7580 for a risk-free consultation and customized quote. Simply call 888-896-7580 or complete our short FedRAMP Equivalency questionnaire. Our team will review your existing Moderate package and deliver a no-obligation roadmap within 48 hours. What is FedRAMP Moderate Equivalency?
Who needs FedRAMP Moderate Equivalency in 2026?
What is the difference between standard FedRAMP Moderate and Moderate Equivalency?
How long does the FedRAMP Moderate Equivalency process take with Lazarus Alliance?
How does Lazarus Alliance accelerate FedRAMP Moderate Equivalency?
What are the benefits of choosing FedRAMP Moderate Equivalency?
How much does FedRAMP Moderate Equivalency cost in 2026?
How do I get started with Lazarus Alliance for FedRAMP Moderate Equivalency?
Lazarus Alliance, as a FedRAMP 3PAO, provides FedRAMP, FISMA, and NIST audit, advisory, and assessment services for public, private, community, and hybrid cloud service offerings, including Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
At Lazarus Alliance, proactive isn't just our trademark—it's our promise to protect your future before threats even emerge. — Michael Peters, CEO & Founder
Leveraging the Continuum GRC IT Audit Machine, Security Trifecta methodology, and the Policy Machine, Lazarus Alliance provides international standards that are recognized as “Best Practices” for developing organizational security standards and controls that support Federal Risk and Authorization Management Program-based compliance audit certifications and assessments.
Credentials You Can Count On
American Association for Laboratory Accreditation (A2LA) ISO/IEC 17020 accredited certification number 3822.01

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Our Lazarus Alliance Cybervisor™ teams have experience performing thousands of assessments for organisations providing services to clients around the world.
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Benefits of FedRAMP Moderate Equivalency
- No Federal Agency Sponsor Required
- For Cloud Service Providers (CSPs): Skip the lengthy sponsorship process and FedRAMP PMO reviews — get to market faster.
- For Defense Contractors (DIB): Access a wider selection of innovative CSPs that don’t serve federal agencies directly.
- Faster Time-to-Revenue & Deployment
- For Cloud Service Providers (CSPs): Reach 300,000+ DIB contractors in weeks instead of months.
- For Defense Contractors (DIB): Onboard compliant cloud services faster without waiting for a full FedRAMP ATO.
- Lower Cost Than Full FedRAMP Authorization
- For Cloud Service Providers (CSPs): Avoid ongoing FedRAMP Marketplace fees, sponsor coordination, and PMO oversight.
- For Defense Contractors (DIB): Choose cost-effective CSP solutions tailored for DoD without premium FedRAMP pricing.
- Identical Security Rigor (100% FedRAMP Moderate Baseline)
- For Cloud Service Providers (CSPs): Deliver enterprise-grade NIST 800-53 Rev. 5 Moderate controls validated by a FedRAMP-recognized 3PAO.
- For Defense Contractors (DIB): Meet DFARS & CMMC requirements with full confidence — same controls, no compromise.
- New Revenue & Market Access
- For Cloud Service Providers (CSPs): Open doors to the entire Defense Industrial Base without pursuing full federal ATO.
- For Defense Contractors (DIB): Gain more CSP choices and competitive options for CUI-handling cloud services.
- Competitive Edge & CMMC Readiness
- For Cloud Service Providers (CSPs): Differentiate your platform with proven DoD-compliant security and streamlined customer assessments.
- For Defense Contractors (DIB): Simplify your CMMC Level 2/3 assessment with a ready-to-use Body of Evidence (BoE).
We want to be your partner and FedRAMP 3PAO compliance audit assessor of choice! For additional information, please call +1 (888) 896-7580.
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