CMMC vs. FedRAMP: Key Differences and How to Decide Which Framework is Right For Your Organization

For organizations aiming to do business with the U.S. government, CMMC and FedRAMP are two critical frameworks to consider. Both are designed to protect sensitive government data, but they each serve different audiences and come with unique requirements.

So how do you know which one applies to your organization—and whether you may need to comply with both?

Here is a detailed breakdown of these two frameworks, how they differ, and how to determine which compliance path is right for your business:

What is CMMC?

The Cybersecurity Maturity Model Certification (CMMC) is a Department of Defense (DoD) program that ensures organizations in the defense industrial base (DIB) implement adequate cybersecurity practices to protect sensitive government information.

Specifically, CMMC is designed to safeguard:

Federal Contract Information (FCI): Data provided by or generated for the government in the course of performing a contract.
Controlled Unclassified Information (CUI): Sensitive government data that isn’t classified, but still poses a national security risk if exposed.

CMMC 2.0, the latest version of the framework, includes three levels of certification that scale based on the sensitivity of the information you handle:

Level 1—Foundational: Level 1 applies to businesses that handle FCI and requires basic safeguarding practices. At this level, self-assessment is allowed; however, some organizations may still choose to work with a C3PAO to ensure all requirements are adequately met,
Level 2—Advanced: This level applies to companies dealing with CUI and requires organizations to implement all 110 security controls specified in NIST SP 800-171.
Level 3—Expert: Performed by the DIB Cybersecurity Assessment Center, this level is intended for the highest priority programs and involves more rigorous controls aligned with NIST SP 800-172.

Whether you plan to work directly with the DoD or serve as a subcontractor, if your work supports DoD missions, CMMC compliance is essential to winning and keeping government contracts.

What is FedRAMP?

The Federal Risk and Authorization Management Program (FedRAMP) is a U.S. government-wide initiative that standardizes the security assessment, authorization, and continuous monitoring of cloud service providers (CSPs) that work with federal agencies.

If your organization provides cloud-based services to any non-DoD federal agency, FedRAMP is the compliance framework you’ll need to follow.

CSPs can choose to pursue one of four levels of authorization:

Low: This level covers basic confidentiality, integrity, and availability protections.
Moderate: The most popular level of authorization, this level adds more stringent controls for CSPs.
High Impact: This level best suits CSPs working with highly sensitive data that requires the most rigorous protection.
Li-SaaS: This is a more streamlined option designed for low-impact authorizations and organizations that don’t interact with personally identifiable information (PII).

Gaining FedRAMP authorization is a rigorous, multi-step process that involves partnering with a sponsoring agency and undergoing a detailed assessment by a Third-Party Assessment Organization (3PAO).

FedRAMP compliance not only meets federal requirements—it also strengthens your security posture and opens the door to valuable government contracts.

Key Differences

While both FedRAMP and CMMC are government cybersecurity frameworks, they differ significantly in terms of purpose, scope, and process:

Target Audience: While FedRAMP is designed for CSPs working with a wide range of civilian federal agencies, CMMC covers contractors and subcontractors working with the DoD.
Authorization Type: FedRAMP requires third-party validation and agency sponsorship to achieve authorization. By contrast, CMMC involves either self-assessments or formal evaluations, depending on the level and contract terms.
Marketplace Visibility: FedRAMP-authorized providers are listed in the FedRAMP Marketplace for agency procurement. CMMC offers no centralized marketplace, but certification is still required for contract eligibility.

Both frameworks offer varying levels of compliance based on the complexity and sensitivity of information that your organization handles.

Which is Right For Your Organization?

Choosing between CMMC and FedRAMP starts with understanding your audience and the type of work you do.

If you’re a cloud service provider targeting civilian federal agencies, FedRAMP is likely your required path. It’s not just about security; it’s a prerequisite for CSPs to sell their services to federal customers.

If you’re working directly or indirectly with the DoD, handling FCI or CUI, then CMMC is required. Without it, you won’t be eligible for most DoD contracts.

In some cases, organizations may need to comply with both frameworks. For instance, a CSP offering services to both federal civilian and defense clients may need to comply with both FedRAMP and CMMC. In these cases, partnering with an experienced consulting firm like BARR Advisory to align your internal controls with both sets of requirements from the start can save your team time and resources.

The Bottom Line

Whether your organization is positioning itself for DoD contracts or pursuing opportunities across a wider range of federal agencies, understanding the differences between FedRAMP and CMMC is key to building a successful public sector strategy.

By knowing what each framework requires—and who it applies to—you’ll be better equipped to make an informed decision and invest in the right path forward.