DOC-REF: FRC-2026-04-28Rev 04 / 2026

Section 6.02.2 - 3PAO Vendor Brief

DOC-REF: FRC-3PAO-SCHELLMAN-001

Schellman FedRAMP Cost: What a Schellman 3PAO Engagement Costs in 2026

Schellman is one of the top three FedRAMP 3PAOs by volume and one of the largest commercial audit firms in the United States across SOC 2, ISO 27001, PCI DSS, and HITRUST. For a FedRAMP Moderate engagement in 2026, plan for $350,000 to $600,000 of Schellman fees on the initial assessment. The firm is particularly well-suited to CSPs that already hold a Schellman SOC 2 report and want consolidated assessor relationships.

Headline

Schellman fees for a FedRAMP Moderate initial assessment typically run $350K to $600K, with annual continuous monitoring at $100K to $230K per year. Strongest fit: commercial SaaS CSPs with an existing SOC 2 Type II report and a clean control inheritance story from the underlying IaaS.

Section A

Who Schellman is and where the firm sits in the FedRAMP market

Schellman & Co. is a Tampa-headquartered assurance and compliance firm that holds a long list of formal accreditations: AICPA peer-reviewed CPA firm, PCI QSA, ISO 27001 certification body, HITRUST CSF Assessor, and FedRAMP 3PAO via A2LA. The firm's commercial position is unusual in the FedRAMP market: most of its revenue comes from commercial assurance work (SOC 2 and ISO 27001 in particular), with FedRAMP as a strategic extension rather than the firm's primary identity. That mix shapes how the firm prices and delivers FedRAMP engagements.

The FedRAMP Marketplace assessor list shows Schellman as the named 3PAO on a substantial book of Moderate-impact authorizations, with a smaller but meaningful presence at High. The firm's authorization volume is enough to give its assessors broad pattern familiarity with commercial SaaS architectures, multi-cloud boundaries, and the inheritance overlap between FedRAMP Moderate and SOC 2 Type II.

The commercial origin matters for buyers. A CSP whose security program was first built to satisfy SOC 2 will find Schellman's vocabulary, control mapping, and evidence expectations familiar. The firm's FedRAMP assessors typically have SOC 2 backgrounds and can move quickly through control families where the CSP has mature SOC 2 evidence already in place. The trade-off is that Schellman's institutional depth on the deepest edges of federal-only territory (FedRAMP Tailored history, DoD IL5 boundary intricacies, certain agency-specific quirks) is shallower than firms whose practice is federally focused. CSPs whose roadmap includes both commercial assurance and federal sales often pick Schellman for exactly this reason: the firm covers the commercial assurance baseline well, and FedRAMP becomes a natural extension.

Section B

Schellman fee bands for FedRAMP Moderate in 2026

Schellman Moderate Fee Bands / Indicative 2026
Engagement TypeIndicative RangeNotes
Readiness Assessment Report (RAR)$55K - $110KStandard pre-assessment offering. Quick turn.
Initial Assessment (Moderate)$350K - $600KIncludes SAP, SAR, control testing. Pen test priced separately or bundled.
Penetration Testing$55K - $130KRequired under CA-8 for Moderate and High.
Annual ConMon Assessment$100K - $230K / yrRecurring subset testing per annual schedule.
Significant Change Re-Test$20K - $80K per SCRPer-change basis.

The Schellman range is generally 10 to 20 percent below the Coalfire band on a like-for-like Moderate scope. Two factors drive that gap. First, Schellman uses some of its lower-cost commercial-assurance senior staff for the parts of FedRAMP testing that overlap with SOC 2 evidence, which reduces the average daily rate across the engagement. Second, the firm's commercial customer base means it can absorb slightly thinner margins on FedRAMP without harming the underlying business, particularly when FedRAMP work cross-sells future SOC 2 renewals.

The biggest cost driver inside a Schellman engagement is the same as with any 3PAO: scope. A CSP that brings a tight authorization boundary, clean control documentation, and inheritance well-described will pay near the bottom of the band. A CSP with sprawling architecture, ambiguous inheritance, and SSP narrative that has not been internally peer-reviewed will see fees climb toward the top of the band even before remediation rework starts. The SSP cost brief covers what good SSP documentation discipline looks like.

Section C

The SOC 2 inheritance angle is real and worth structuring around

A CSP that holds a current Schellman-issued SOC 2 Type II report enters a Schellman FedRAMP engagement with meaningful structural advantages. The firm already knows the CSP's control environment, has tested most identity, change management, and operations controls in the SOC 2 cycle, and has an internal record of the CSP's evidence quality. FedRAMP requires more controls and deeper testing than SOC 2, but the overlap is significant. Practical experience suggests SOC 2 Type II coverage maps to between 40 and 60 percent of the NIST 800-53 Rev 5 Moderate baseline, depending on the CSP's Trust Services Criteria scope.

When that overlap is in place and the assessor is the same firm, three things happen. First, evidence collection is faster: the CSP does not have to re-pull control evidence the firm already has on file from the SOC 2 audit. Second, control mapping is more accurate: the assessor knows where the gaps actually are, not just where the CSP claims they are. Third, audit-time surprises are lower: most of what would have been a "this control is not designed as described" finding in a cold-start assessment is already known and budgeted for remediation before fieldwork begins. The FedRAMP vs SOC 2 comparison page explains the overlap in detail.

The financial value of that consolidation is hard to specify precisely, but CSPs that have run it both ways (SOC 2 with one firm, FedRAMP with another vs both with Schellman) typically describe the consolidated path as saving 15 to 30 percent on FedRAMP remediation cost and 4 to 8 weeks on the overall authorization timeline. The consolidated path is not a silver bullet (a Coalfire-experienced agency sponsor may still prefer a Coalfire SAR), but for CSPs whose commercial assurance is already in Schellman's book, the inertia of consolidation is rational.

Section D

When Schellman is not the right pick

Two scenarios push CSPs toward a different 3PAO. First, agency familiarity. If the CSP's sponsoring agency has a strong working relationship with another firm (Coalfire is the most common example), the agency's internal review of the SAR will be faster with the familiar firm. For CSPs racing a fiscal-year ATO deadline, this matters more than the headline fee difference. Second, federal-only depth. CSPs whose roadmap pushes beyond FedRAMP Moderate into DoD IL4/IL5 territory often prefer Kratos / SecureInfo for the deeper SRG context. Schellman performs DoD-adjacent work, but its commercial DNA means it leans less heavily on classified or quasi-classified federal context.

Price-only decisions sometimes also push toward smaller, less well-known firms. The risk in that direction is report quality and agency acceptance: a SAR from an unfamiliar 3PAO often draws more questions from agency AOs and adds weeks to review. Schellman is large enough to be familiar to most agency reviewers, which eliminates that risk without paying the full Coalfire premium.

Section E

Frequently asked questions

E.1

How much does a Schellman FedRAMP assessment cost?

For FedRAMP Moderate, Schellman engagements typically run $350,000 to $600,000 for the initial assessment, plus optional readiness and recurring continuous monitoring. The firm prices slightly below Coalfire on like-for-like scope, partly because of strong cross-leverage with its SOC 2 practice.

E.2

Why are CSPs with SOC 2 reports drawn to Schellman?

Schellman is one of the largest SOC 2 audit firms in the United States. CSPs that already hold a Schellman SOC 2 Type II report often consolidate to Schellman for FedRAMP because the firm has working knowledge of the CSP's control environment and can identify FedRAMP-overlapping evidence efficiently, reducing the effort the CSP has to spend re-mapping controls.

E.3

Is Schellman a good fit for FedRAMP High?

Yes, Schellman performs FedRAMP High assessments and has multiple High-impact authorizations on the FedRAMP Marketplace. The fee profile sits in the $700,000 to $1.2M band for High, similar to Coalfire and slightly below the High premium some smaller firms charge for the same scope.

E.4

Does Schellman do FedRAMP readiness work?

Yes, Schellman performs Readiness Assessment Reports (RARs) and pre-assessment gap analyses. Under FedRAMP independence rules, the firm performing readiness can also perform the formal assessment, provided it has not authored the SSP narrative itself.

E.5

How does Schellman handle ConMon engagements?

Schellman's continuous monitoring practice for FedRAMP Moderate typically prices at $100,000 to $230,000 per year, covering the annual subset assessment, periodic penetration testing, and POA&M review. The firm's annual schedules are well-defined, which helps CSPs forecast budget but reduces flexibility on testing timing.

E.6

Can Schellman bundle SOC 2 and FedRAMP audit work?

Schellman can run a parallel SOC 2 Type II audit alongside FedRAMP assessment, but the two cannot share the same final report. Operationally, the firm can coordinate evidence collection across both audits, which reduces engineering distraction and produces meaningful (15 to 25 percent) savings on the SOC 2 audit fee when both are in flight together.

Section F

Related briefs

DOC-REF: FRC-2026-04-28 / Updated 2026-04-28