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FedRAMP vs. ITAR: Key Differences and Compliance Considerations

Understand the critical differences between FedRAMP and ITAR , and how they work together, to master compliance for federal cloud security and defense tech exports.

Kenny Scott
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53
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In This Article

FedRAMP 20x Process

Ever wondered what the difference is between FedRAMP and ITAR? Both relate to handling sensitive information for federal purposes, but they serve distinct roles. 

FedRAMP focuses on securing cloud environments for federal agencies, but ITAR governs the access and sharing of defense-related technologies. 

Here’s a full breakdown of the differences, the relationship between FedRAMP and ITAR.

What is FedRAMP Compliance?

FedRAMP, or the Federal Risk and Authorization Management Program, is a government-wide program that standardizes the security assessment, authorization, and continuous monitoring for cloud products and services used by federal agencies. 

It's essentially a framework that cloud service providers must adhere to if they want to serve U.S. government clients, promoting consistency and reducing redundant audits.

→ Learn more about What FedRAMP is and the easiest way to get started

Primary Goal of FedRAMP

The goal here is to ensure that cloud systems are secure enough to handle federal data. 

Getting FedRAMP authorized requires implementing rigorous controls around data protection, access management, and ongoing compliance monitoring. Read about the FedRAMP compliance process for more detail. 

FedRAMP authorizations come in impact levels like Low, Moderate and High, depending on the sensitivity of the data involved. 

FedRAMP 20x was also introduced in 2025. The pilot program is built to simplify and add more automation to the process. We believe 20x is the future of compliance, check out the video to find out why:

→ Is FedRAMP 20x right for you?

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What is ITAR?

ITAR, which stands for International Traffic in Arms Regulations, is a set of U.S. regulations administered by the Department of State. It controls the export and import of defense-related articles and services listed on the United States Munitions List (USML). 

This includes weapons, defense systems, military-grade software, and associated technical data. ITAR applies broadly to companies, universities, and individuals involved in developing, manufacturing, or distributing these items. 

Focus of ITAR

The core focus is preventing unauthorized foreign access to sensitive technologies that could impact national security.

Key aspects of ITAR compliance include:

  • Data Residency and Storage: ITAR-controlled technical data must remain on U.S. soil. This means no backups, archives, or mirrors can be stored outside the U.S. without explicit State Department authorization, which is a complex and time-consuming process. Many public cloud providers replicate data globally by default, so ITAR-compliant setups require geofencing to U.S. regions only.
  • Access Controls: Only U.S. persons—defined as U.S. citizens or lawful permanent residents—can access ITAR data without special approval. This extends to identity and access management (IAM) systems, requiring thorough vetting and background checks beyond standard HR processes. Even remote system administrators or support staff outside the U.S. could trigger violations.
  • Encryption and Key Management: Data must be encrypted both in transit and at rest. Encryption keys should ideally be managed in the U.S. by U.S. persons, avoiding any reliance on foreign-based key escrow or support services. This is critical for technologies like encryption algorithms that could have dual-use applications.
  • Cloud Provider Contracts: Not all cloud providers support ITAR. Compliant options include Microsoft Azure Government, AWS GovCloud, Google Cloud Assured Workloads, and Oracle Cloud. Providers must demonstrate ITAR-specific SLAs, boundary definitions, and compliance attestations, often building on FedRAMP foundations.
  • Software Development and Support: Development teams must evaluate if source code, design documents, or other artifacts fall under ITAR. Offshoring development, QA, or support that interacts with ITAR data is prohibited. CI/CD pipelines and repositories need to be hosted in ITAR-compliant environments.
  • Third-Party Integrations: All components and integrations must be vetted for compliance to avoid legal risks.

Key Differences Between FedRAMP and ITAR

While both frameworks aim to protect sensitive information, their scopes and emphases are significantly different. Basically, FedRAMP is a security certification program for clouds, while ITAR is a regulatory regime for controlling defense exports.

Here are the main differences:

FedRAMP ITAR
Focus Area Centered on cloud security and authorization for federal use, ensuring systems meet baseline security controls (e.g., based on NIST standards). About export controls for defense technologies, emphasizing who can access what and where data can reside.
Applicability Applies to cloud service providers and federal agencies using those services. Targets anyone dealing with defense articles, from manufacturers to researchers, regardless of whether they're using cloud systems.
Geographic and Personnel Restrictions Doesn't inherently mandate U.S.-only access but includes controls for protecting federal data, which can overlap with ITAR in defense contexts. Has strict U.S.-only requirements for data storage and access by U.S. persons.
Compliance Process Involves third-party assessments and authorizations. Requires registration with the State Department, self-certification, and potential licenses for exports, with severe penalties for violations.

How Are FedRAMP and ITAR Related?

There's notable overlap, especially when federal data involves defense-related information. 

For example, if a cloud system handles ITAR-controlled data for a federal agency, it often needs both FedRAMP authorization and ITAR compliance. 

Many ITAR-compliant clouds build on FedRAMP baselines, incorporating additional controls like enhanced access restrictions and data localization. 

This does mean that achieving FedRAMP can simplify parts of ITAR compliance, such as encryption standards and IAM, but ITAR adds layers like personnel nationality verification.

Paramify Can Help with FedRAMP Compliance

Considering FedRAMP, but confused? Start with Paramify. You can simplify and streamline the process from start to ConMon with our tool. Many of our users were even able to achieve FedRAMP 20x in less than 30 days. 

While Paramify focuses on FedRAMP, our Risk Solutions — a structured approach to security controls — can indirectly support environments where FedRAMP and ITAR intersect, ensuring robust data protection without overcomplicating workflows. 

Feel free to reach out with any questions about FedRAMP or ITAR. Our team loves to help! You can learn more about simplifying compliance with Paramify with a live demo or by requesting a demo video below to watch at your convenience. 

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Kenny Scott
Kenny is an accomplished leader with a two decade tenure in Information Security and IT Audit. He's widely acknowledged in the industry and has a profound dedication to it. In addition to his technical expertise, Kenny's portfolio includes substantial experience in business strategy, investment, and programming. On the personal side, Kenny is a devoted husband to Angie Scott and a proud father of five. A music enthusiast, he relishes playing the guitar and enjoys surfing when a beach is within reach.
Oct 2025
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Once authorized, can I sell to any federal agency?

Yes — authorization can be reused by multiple agencies via the FedRAMP Marketplace, but some agencies may request additional requirements.

How is FedRAMP 20x different from traditional FedRAMP?

20x introduces automation, key security indicators (KSIs), continuous monitoring validation, and streamlined authorization (sometimes without sponsor requirements).

→ Compare KSIs to Rev 5 controls

What are the most common reasons for delays or failures in FedRAMP authorization?

Incomplete documentation, insufficient evidence, failing initial gap assessments, lack of executive support, and underestimating resource requirements.

→ How to create the most accurate documentation for audit success

What's the difference between FedRAMP and other frameworks (SOC 2, CMMC, ISO 27001)?

FedRAMP is U.S. government-specific and NIST-based, more prescriptive and granular than commercial standards.

How do inherited controls from my cloud infrastructure provider (e.g., AWS, Azure, GCP) work?

FedRAMP allows CSPs to “inherit” controls from IaaS providers; you must document and verify this inheritance with shared responsibility models.

What kind of technical controls are required under FedRAMP?

Controls follow NIST SP 800-53 Rev 5 (with additional FedRAMP overlays) — covering access control, incident response, risk assessment, configuration management, etc.

→ Get your custom accelerated FedRAMP implementation roadmap

How often do I need to update and submit security documentation?

At minimum: 

  • Monthly POAMs and vulnerability scans
  • Annual security assessments
  • Ad hoc submissions for significant changes.

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What is a POA&M?

Plan of Action and Milestones: a document tracking remediation plans for open vulnerabilities, findings, and compliance issues.

→ Learn more about POAMs

What is continuous monitoring (ConMon) and why is it important?

ConMon involves ongoing assessments, vulnerability scanning, reporting POAMs, and keeping security posture current post-authorization.

What documentation is required for FedRAMP?

Major deliverables include a System Security Plan (SSP), Security Assessment Plan (SAP), Security Assessment Report (SAR), Plan of Actions and Milestones (POA&M), Continuous Monitoring (ConMon) documentation, policies/procedures, and more.

Do I need an agency sponsor?

Yes, for now. But, agency sponsorship requirements are evolving — FedRAMP 20x does not require a sponsor.

How do I pick the best 3PAO for my project?

Consider experience with similar environments, references, price, and knowledge of specific cloud implementations.

→ Find the best assessor for your CSP with these tips

What is a 3PAO?

A Third Party Assessment Organization is an accredited independent assessor that conducts key security testing and assessment for FedRAMP. 

→ Find a recommended 3PAO

How much does FedRAMP Authorization cost?
  • Initial costs range from ~$150k to $3M+ for gap assessments, remediation, 3PAO audits, and documentation/reporting. 
  • Annual costs can range from $50k to $1m to maintain documentation, do continuous monitoring, and resource allocation. 

→ Learn more about what FedRAMP could cost your organization and whether or not it’s worth the effort

How long does it take to achieve FedRAMP Authorization?

Typical processes take 6–24 months. Paramify accelerates the process to take between 1-10 months with a fully prepared package in less than a month. 

Your timeline will vary depending on your impact level, whether you take a manual or automated approach to implementation & documentation, and PMO wait times.

→ Learn about the FedRAMP Authorization process and what it costs.

What’s the difference between FedRAMP Ready, FedRAMP In Process, and FedRAMP Authorized?
  • Ready: Preliminary review for capability and documentation.
  • In Process: CSP is actively working toward authorization, usually with an agency sponsor or as part of the JAB program.‍
  • Authorized: Successfully completed security assessment and continuous monitoring.
What are the different impact levels for FedRAMP?

Low, Moderate, and High — based on the type and sensitivity of federal data hosted (FIPS 199 categories: confidentiality, integrity, availability).

→ Get the details on impact level to know which impact level is right for you.

Do You Need FedRAMP?

Any cloud service provider (CSP) that wants to sell cloud products or services to U.S. federal agencies must be FedRAMP authorized.

→ Learn more to find out if FedRAMP is a good choice for your cloud-based business.

What is FedRAMP

FedRAMP stands for the Federal Risk and Authorization Management Program; it standardizes the security assessment, authorization, and continuous monitoring for cloud products and services used by U.S. federal agencies.

How long will it take to generate my SSP?

If you’re new to FedRAMP: The time required depends on how long it takes to implement your security controls. With Paramify’s living gap assessment dashboard, you can build your compliance roadmap and generate documents instantly with one click.

If you’re already FedRAMP authorized: It can take as little as 3.5 hours or up to a week.

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Can you help me transition from NIST 800-53 Rev 4 to Rev 5?

Yes! No one will help you transition to FedRAMP Rev 5 as affordably and painlessly as Paramify. Learn how you can make a seamless, inexpensive transition to Rev 5.

Can I use my existing SSP?

Yes, we offer this service and have provided it for many clients. Most of our customers, including those for whom we’ve ingested their SSP, have found that starting from scratch and adopting the full power of Risk Solutions was the better option.

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