Why “FedRAMP Equivalency” Isn’t Enough Anymore—Especially Now That CMMC Is Mandatory

CMMC Certification Is No Longer Optional

As of October 1, 2025, CMMC is no longer a theoretical framework or a future requirement— after 7years, it’s official. The Department of Defense begain finalizing the CMMC Program Rule (32 CFR Part 170) in October 2024. But the real shift happens this fall: starting October 1, 2025, the final 48 CFR Acquisition Rule mandates that CMMC certification be included in nearly all new DoD contracts. If you're a defense contractor or part of the broader defense industrial base (DIB), the countdown is over.

"That means compliance is no longer a “check back later” initiative. It’s now a revenue gate."

And for cloud service providers (CSPs)—or the companies relying on them to handle Controlled Unclassified Information (CUI)—the difference between “FedRAMP Authorized” and “FedRAMP Equivalent” isn’t theoretical anymore. It’s quickly becoming a line of demarcation between who keeps their contracts and who gets left behind.

Equivalency vs. Authorization: Two Very Different Paths

For the past few years, there's been growing confusion—some of it intentional—about whether equivalency can stand in for true FedRAMP Moderate Authorization. That debate reached a crescendo after the DoD issued a January 2, 2024 memorandum outlining what “FedRAMP Moderate Equivalency” entails.

Here’s the gist:

• FedRAMP Authorization means a full audit by a recognized 3PAO, followed by federal agency or Joint Authorization Board (JAB) sign off. It results in inclusion in the FedRAMP marketplace and recognized government-wide acceptance.

• FedRAMP Equivalency is a workaround for a business that can't get authorized. A CSP can say, “we’ve implemented all the controls,” undergo a 3PAO assessment, build a Body of Evidence (BoE), and seek per-contract approval. That’s it.

The DoD put it plainly:

“FedRAMP Moderate Equivalency ≠ FedRAMP Moderate Authorization.”
— DoD CIO Memorandum, January 2, 2024

In theory, equivalency offers flexibility. In practice, it creates fragmentation, risk, and a higher burden for every contractor in the chain.

Pressure Is Mounting—And It’s Rolling Downhill

In nearly every conversation we’ve had with large defense contractors (primes), the message has been consistent: they’re feeling the pressure. Whether from their internal compliance teams, federal acquisition officials, or risk officers overseeing supply chain integrity, the expectation is clear: use FedRAMP Moderate Authorized solutions, or be prepared to defend why you didn’t.

And that pressure doesn’t stop at the top.

As primes move to de-risk their own compliance postures, they’re passing that expectation downstream. Tier 2 and Tier 3 contractors are now being told—explicitly or implicitly—that any platform they use to handle CUI must be FedRAMP Authorized, not merely “equivalent.”

Equivalency is beginning to feel like a liability, not a shortcut.

FedRAMP Authorization vs. Equivalency: What’s at Stake?

Let’s break down the key differences in a way that matters to federal contractors:

FedRAMP Authorization is pre-approved, portable, and respected across agencies. Equivalency is none of those things—and every time the DoD updates its interpretation of “acceptable,” you’re back at the drawing board.

Sharetru Federal: FedRAMP Moderate Authorized at Every Level

At Sharetru, we made an intentional decision to pursue true FedRAMP Moderate Authorization—not just for our application, but across the full stack:

• Infrastructure-as-a-Service (IaaS)

• Platform-as-a-Service (PaaS)

• Software-as-a-Service (SaaS)

Our authorization was granted under a Joint Authorization Board (JAB) ATO—historically the most rigorous and widely recognized pathway in the federal government. That legacy authorization is still valid under today’s FedRAMP Board, and we’ve already transitioned our controls to NIST SP 800-53 Revision 5.

You can view our listing as an authorized service in the FedRAMP Marketplace here. Sharetru Federal operates within the boundary of Package ID: F1311222650, and is fully FedRAMP Moderate Authorized across IaaS, PaaS, and SaaS service layers.

That means:

• All of Sharetru Federal is audited, authorized, and continuously monitored.

• You don’t have to explain or justify our use in a contract—we’re already approved.

• You avoid the risks that come with riding the wave of policy memos and changes.

Equivalency’s Hidden Costs

Equivalency isn’t just risky—it’s expensive in all the ways that matter.

1. Memo churn

Each new policy memo has the potential to redefine what counts as “compliant.” That means contractors relying on equivalency are stuck chasing a moving target.

2. BoE upkeep

With authorization, your CSP handles continuous monitoring and documentation. With equivalency, you do. Every contract. Every time. That’s compliance fatigue waiting to happen.

3. Agency discretion

Even if your CSP “meets the controls,” the agency you’re contracting with might still reject equivalency. Especially now, as contract officers move toward stricter enforcement in anticipation of full CMMC rollout.

4. Downstream risk

If you’re a subcontractor, your prime may decide it’s not worth the legal exposure to let you rely on an equivalent-but-not-authorized provider. That could cost you the relationship—and the revenue that comes with it.

CMMC Level 2 & FedRAMP: A Path of Reciprocity

The good news? There’s a clear path through all of this: use a FedRAMP Authorized CSP.

CMMC Level 2 certification requires adherence to NIST SP 800-171, which heavily overlaps with the FedRAMP Moderate control baseline (based on NIST SP 800-53). That’s why the DoD and CMMC Accreditation Body have repeatedly stated that FedRAMP Moderate Authorized cloud platforms are eligible for reciprocity—they can be used without needing additional proof of compliance.

But that’s only true for Authorized services. Not for equivalent ones. If your provider doesn’t have an ATO, you bear the burden of proof.

"If a federal agency wouldn’t use a provider based on equivalency alone, why would a prime contractor trust it for its supply chain?"

Authorization Isn’t Just a Checkbox. It’s a Contract Strategy.

Defense contractors aren’t just looking for check-the-box solutions anymore—they want platforms that remove friction from procurement, reduce risk, and safeguard their standing with federal partners.

Authorization does that.

At Sharetru, we don’t believe in halfway compliance. We believe in confidence. In certainty. In knowing that when a prime contractor—or a program officer, or a C3PAO—asks, “Is this platform FedRAMP Authorized?” you can answer with a simple, qualified, "yes, and here's the Package ID."

Final Word: Don’t Bet Your Contract on Equivalency

The shift is already happening. CMMC is official. FedRAMP standards are tightening. Primes are signaling they won’t accept anything less than full authorization—and they’re pushing that expectation down their supply chains.

Equivalency might get you through the door today. But what happens when the door closes next quarter?

Choose a provider that’s already where the market is going. Sharetru Federal gives you pre-approved access to a FedRAMP Moderate Authorized environment—no memos, no exceptions, no caveats. Just compliance, backed by government auditors and a JAB ATO.

Because when CUI is on the line and compliance is now non-negotiable, the safest choice is the one that’s already certified.

FedRAMP Authorization Package ID: F1311222650
FedRAMP Level: Moderate
Authorized Service Layers: IaaS, PaaS, SaaS
FedRAMP JAB ATO Granted: Legacy; Recognized under current FedRAMP Board
Security Baseline: NIST SP 800-53, Rev. 5