Compliance Glossary

Third-Party Assessment Organization, 3PAO for short, is an independent partner organization that conducts a thorough assessments of a cloud service provider for the FedRAMP (Federal Risk and Authorization Management Program) on the basis of federal security guidelines. 

The federal government depends on 3PAO assessments to make a risk-based decision on whether they should include a specific cloud product and service within it’s CSP marketplace. 

In order for an organization to get authorized, it must undergo a Readiness Assessment Report (RAR) that is conducted by a 3PAO. Once the 3PAO finds that the CSP adheres to the requirements of FedRAMP, it documents this in the RAR. 

The 3PAO provides a Security Assessment Plan (SAP) and Security Assessment Report (SAR), which are submitted to a government Authorizing Official (AO) for final approval.

3PAOs can also get accredited using a conformity assessment process established by FedRAMP. The process is conducted through the American Association for Laboratory Accreditation (A2LA). It ensures that the third party organization meets essential standards for quality, independence, and FedRAMP expertise.

To keep their accreditation, 3PAOs must consistently show they are independent, maintain high-quality standards, and have up-to-date FedRAMP knowledge while assessing cloud systems.

Once recognized by FedRAMP, third-party assessment organizations are listed on the official FedRAMP Marketplace. As of August 2024, there are 43 3PAOs in the marketplace. They have been classified based on the number of products they have assessed (or in the process of assessing), impact level, and FedRAMP authorization status.