This article is prepared for the Government contractor Aerospace and Defense Manufacturers. "FedRAMP-Ready" does NOT mean "FedRAMP-Certified". FedRAMP Ready only means an ERP vendor started the process — but are not certified.
What is FedRAMP and why does it matter?
FedRAMP is the mandatory security standard for any cloud software that touches US federal government data. Every federal agency is required by law to use only FedRAMP-certified cloud services. For cloud ERP vendors, FedRAMP certification is their license to federal market opportunities.
FedRAMP layers on top of NIST 800-53 security controls, adding cloud-specific requirements around continuous monitoring, incident reporting, and supply chain security. NIST compliance alone will not qualify a vendor for FedRAMP Certification.
What is the difference between FedRAMP Ready vs FedRAMP Certified?
These two labels are not interchangeable, even though ERP vendors routinely use them as if they are.
| Label | What It Actually Means | Does it mean ERP Vendor is certified? |
| FedRAMP Ready | Vendor submitted paperwork and entered the marketplace as a candidate. No assessment completed. | No. |
| FedRAMP Certified | An independent assessor evaluated the system. An authorizing official approved it. Certification active & monitored. | Yes. |
Under CR26, the official title changes from “FedRAMP Authorization / Authorized” to “FedRAMP Certification / Certified.” The meaning stays the same; only the lables change.
New Certification Classes Are On the Way: A, B, C, and D
FedRAMP is replacing Low, Moderate, and High impact labels with four lettered Certification Classes. The old labeling caused confusion with DoD Impact Level terminology. The new letter designation clearly describes the security assessment required:
| Class | Replaces | Applies To | Controls |
| Class A (Pilot) | FedRAMP Ready | ERP Cloud Vendors launched the certification process. Not a finished certification. | Scoped per offering |
| Class B | FedRAMP Low | Cloud Services handling public or non-sensitive government data. | Up to 156 |
| Class C | FedRAMP Moderate | Cloud Services handling Controlled Unclassified Information(CUI). | Up to 325 |
| Class D | FedRAMP High | Mission-critical systems: law enforcement, national security, emergency services. | Up to 421 |
Most DoD contractors need at least Class C for FedRAMP and inevitably CMMC Level 2 Certification.
What does FedRAMP Certification Require?
- System Security Plan (SSP): The vendor documents security architecture, defines what is inside the certification boundary, and maps every required control. Defining the boundary correctly is the most significant step in the process.
- Independent Assessment: A certified Third-Party Assessment Organization (3PAO) reviews the system and produces a Security Assessment Report covering vulnerability scans, penetration tests, and a Risk Exposure Table. If a 3PAO cannot cite the specific requirement behind a finding in writing, the finding may not be valid.
- Continuous Monitoring (ConMon): Certification is not a destination. It is a journey. Vendors must share ongoing security monitoring data with every federal agency customer holding an Authorization to Operate (ATO). Failing to provide ConMon access is directly enforceable.
CR26: Key Dates
CR26 (Consolidated Rules 2026) replaces years of scattered, interpretive guidance with a single, machine-readable rule set. The important dates are:
| Date | What Happens |
| July 28, 2026 | FedRAMP Ready title retires. Replaced by Class A (Pilot). |
| January 2027 | CR26 enforcement begins. All Rev5 baseline requirements become mandatory. |
| November 2027 | Class D services must deliver machine-readable (OSCAL) compliance packages. |
| Through December 2028 | CR26 rules remain in effect. |
Bottom Line
