How to Choose a FedRAMP 3PAO: Selection Guide
Quick Answer
A FedRAMP 3PAO (Third Party Assessment Organization) is an independent assessor accredited by the FedRAMP PMO to conduct security assessments. Choose based on experience with your impact level, industry expertise, team availability, and pricing. Typical 3PAO fees range from $150,000 to $500,000 for the initial assessment.
What Is a FedRAMP 3PAO?
A Third Party Assessment Organization (3PAO) is an independent security assessment firm accredited by the FedRAMP PMO to conduct security assessments of cloud service providers. Think of them as your FedRAMP auditor — they evaluate whether your cloud service meets the required security controls and produce the Security Assessment Report (SAR) that is part of your authorization package.
Key Takeaways
- 3PAOs must be accredited by the FedRAMP PMO — there are approximately 40-50 accredited firms
- Initial assessment fees typically range from $150,000 to $500,000 depending on impact level and complexity
- Choose a 3PAO with experience at your impact level and in your technology stack
- The 3PAO relationship is long-term — they also conduct your annual assessments
- A good 3PAO is a partner, not just an auditor — they should help you succeed
3PAO Selection Criteria
| Criterion | What to Look For | Red Flags |
|---|---|---|
| FedRAMP Experience | Number of completed assessments, range of impact levels | No completed FedRAMP assessments, only readiness reviews |
| Technology Expertise | Experience with your cloud provider (AWS, Azure, GCP) | No experience with your tech stack or deployment model |
| Team Availability | Dedicated team assigned, clear timeline commitment | Inability to start within 2-3 months, frequent staff turnover |
| Industry Knowledge | Experience with similar products/services | Generic approach with no industry-specific insight |
| Communication | Clear reporting, regular status updates, accessible team | Slow response times, opaque process, minimal guidance |
| Pricing Model | Transparent fixed-fee or clear T&M estimates | Vague pricing, excessive change orders, hidden fees |
| Remediation Support | Guidance on fixing findings, not just identifying them | Report findings without actionable remediation advice |
3PAO Selection Process
How to Select Your 3PAO
Review the FedRAMP 3PAO list
Start with the official FedRAMP PMO list of accredited 3PAOs. This list is maintained on the FedRAMP website and includes contact information for each firm.
Create a shortlist of 3-5 firms
Filter based on your impact level, geographic preference, and initial research on their reputation. Ask your FedRAMP consultant, peer companies, and agency contacts for recommendations.
Issue an RFI or informal inquiry
Send a brief description of your system, target impact level, desired timeline, and request pricing proposals. Include your system architecture diagram for accurate scoping.
Evaluate proposals
Compare on experience, team composition, timeline, methodology, and price. Beware of significantly low bids — they may indicate a less thorough assessment.
Conduct reference checks
Ask each finalist for 2-3 client references. Ask references about communication quality, timeline adherence, finding quality, and remediation guidance.
Negotiate and contract
Negotiate scope, timeline, deliverables, and payment terms. Include clauses for remediation re-testing and scope changes.
Working with Your 3PAO
✅ Start with a readiness assessment
Consider engaging your chosen 3PAO for a readiness assessment before the full assessment. This identifies gaps early, gives you time to remediate, and builds a working relationship with the assessment team. Readiness assessments typically cost $30,000-$80,000.
- Assign a dedicated point of contact to manage the 3PAO relationship
- Provide complete and organized evidence — disorganized documentation extends assessment time
- Be transparent about known gaps — hiding issues wastes everyone's time
- Schedule regular check-ins during the assessment period
- Respond to information requests promptly to keep the assessment on track
- Plan for remediation cycles — most assessments identify findings that need fixing
3PAO Pricing Breakdown
$30K-$80K
Readiness Assessment
Optional pre-assessment to identify gaps
$150K-$350K
Moderate Full Assessment
Complete initial assessment for FedRAMP Moderate
$250K-$500K
High Full Assessment
Complete initial assessment for FedRAMP High
$100K-$250K
Annual Assessment
Yearly recurring assessment for continuous monitoring
Can I switch 3PAOs after the initial assessment?
Yes, you can change 3PAOs for your annual assessments. However, transitioning adds some overhead as the new 3PAO needs to familiarize themselves with your system and previous findings. Some organizations switch to get fresh perspective or better pricing.
How long does a 3PAO assessment take?
The active assessment phase (on-site or remote testing) typically takes 4-8 weeks for FedRAMP Moderate. Total elapsed time including preparation, documentation review, and SAR creation is 2-4 months. Remediation and re-testing can add another 1-3 months.
What deliverables does the 3PAO provide?
The primary deliverable is the Security Assessment Report (SAR), which documents all tested controls, findings, risk ratings, and remediation recommendations. They also provide vulnerability scan results, penetration test reports, and the Security Assessment Plan (SAP) that outlines the assessment methodology.
Do 3PAOs help with SSP writing?
3PAOs cannot write your SSP — that would be a conflict of interest. However, many 3PAOs offer SSP review services where they provide feedback on your draft SSP before the assessment begins. For SSP writing, hire a separate FedRAMP consultant.
Compare FedRAMP 3PAOs
Find and compare accredited 3PAOs by experience, specialization, and pricing.
Browse 3PAO Directory