Section 6.11 - Budget Planning Worksheet
DOC-REF: FRC-CHK-001
FedRAMP Budget Planning Checklist
Every line item you need to present to your CFO or board when requesting FedRAMP authorization budget. Organized by phase with Low, Moderate, and High impact level ranges.
Note / Usage
Copy these tables into a spreadsheet for your budget presentation. Select the column matching your target impact level and adjust ranges based on your specific environment and security posture.Section A. Pre-Authorization
Phase 1 line items
| Line Item | Low | Moderate | High |
|---|---|---|---|
| Gap Analysis / Readiness Assessment | $15k - $30k | $30k - $80k | $60k - $120k |
| Consultant Selection and Contracting | $5k - $10k | $5k - $15k | $10k - $20k |
| 3PAO Selection and Contracting | $5k - $10k | $5k - $15k | $10k - $20k |
| FedRAMP-Compliant Environment Buildout | $20k - $50k | $40k - $120k | $80k - $200k |
| Security Tooling Procurement | $25k - $60k | $65k - $200k | $100k - $300k |
| Staff Training and Onboarding | $5k - $10k | $5k - $20k | $10k - $30k |
Section B. Authorization
Phase 2 line items
| Line Item | Low | Moderate | High |
|---|---|---|---|
| SSP Development | $40k - $80k | $50k - $200k | $100k - $350k |
| Policy and Procedure Documentation | $20k - $40k | $30k - $80k | $50k - $120k |
| OSCAL Package Conversion / Development | $15k - $30k | $30k - $80k | $50k - $120k |
| 3PAO Initial Assessment | $100k - $200k | $350k - $650k | $700k - $1.2M |
| Remediation Budget | $30k - $80k | $100k - $300k | $200k - $500k |
| Remediation Contingency (10-20%) | $30k - $50k | $80k - $200k | $200k - $500k |
| 3PAO Retesting After Remediation | $15k - $30k | $30k - $60k | $50k - $100k |
| Agency Review Support | $5k - $15k | $10k - $30k | $20k - $50k |
| FedRAMP PMO Coordination | $5k - $10k | $5k - $15k | $10k - $20k |
Section C. Post-Authorization (Annual)
Phase 3 line items
| Line Item | Low | Moderate | High |
|---|---|---|---|
| Monthly Vulnerability Scanning (annual) | $12k - $24k | $24k - $60k | $48k - $120k |
| Annual Penetration Testing (annual) | $15k - $30k | $25k - $60k | $40k - $80k |
| 3PAO Annual Subset Assessment (annual) | $30k - $60k | $80k - $150k | $150k - $300k |
| POA&M Management (annual) | $5k - $12k | $15k - $40k | $30k - $60k |
| Incident Response Readiness (annual) | $5k - $10k | $15k - $30k | $25k - $50k |
| SSP and Documentation Updates (annual) | $8k - $15k | $20k - $40k | $30k - $60k |
| Significant Change Requests (annual) | $5k - $10k | $10k - $30k | $20k - $50k |
| Dedicated Compliance Staff (annual) | $60k - $90k | $120k - $180k | $150k - $220k |
| Security Tooling Renewals (annual) | $20k - $50k | $50k - $150k | $80k - $250k |
Section D - Indicative Totals
Budget Summary (Authorization + Year 1)
FedRAMP Low
$350k - $600k
+ $60k-$120k/yr ongoing
FedRAMP Moderate
$800k - $2.2M
+ $150k-$350k/yr ongoing
FedRAMP High
$2.5M - $5M+
+ $300k-$600k/yr ongoing
Section E. Common Mistakes
Six budget pitfalls to avoid
Under-budgeting remediation
The 3PAO almost always finds more issues than your internal gap analysis. Budget 10-20% of your total authorization cost as remediation contingency. Organizations that skip this line item regularly exceed budget by $100k-$300k.
Forgetting ConMon in year 1
Year-one ConMon starts immediately after ATO. Monthly vulnerability scanning, POA&M management, and incident response readiness begin on day one. Budget ConMon costs from the authorization date, not from year two.
Not accounting for staff time
FedRAMP consumes significant internal engineering and compliance time. For a 50-person engineering team, expect 2-4 FTE equivalents diverted for 12-18 months. A real cost even if no new hires are made.
Ignoring tooling costs
SIEM licensing, vulnerability scanning, EDR, encryption key management, and log aggregation add $65k-$300k/year for Moderate impact. These are not optional. Required to meet FedRAMP control baselines.
Treating authorization as a one-time cost
FedRAMP is an ongoing financial commitment. ConMon costs are perpetual. A $1M Moderate authorization becomes $2.5M-$4M over five years. Present 5-year TCO to your CFO, not just authorization cost.
Not budgeting for boundary expansion
Adding services or regions to your authorization boundary after ATO triggers Significant Change Requests. Each major boundary expansion can cost $50k-$200k. Budget for at least one expansion in the first two years.
Next step
Get a personalized estimate
The cost worksheet adjusts for your impact level, security posture, and organization size. The ROI worksheet models payback against federal revenue.