Meeting the FedRAMP Equivalency Requirement of CMMC

For CMMC compliance under DFARS 7012, specifically section (c), organizations must meet the cyber incident reporting requirement. This section requires contractors to (i) review for evidence of compromise of covered defense information, (ii) to rapidly report that information to the DoD in a (2) cyber incident report, as well as (3) acquire a DoD-approved medium assurance certificate to report these cyber incidents. Kiteworks’ FedRAMP customers can rest assured that in the unlikely event of a breach, cybersecurity and privacy incident reporting will be performed in accordance with U.S. government guidelines established by the FedRAMP Program as laid out in the Kiteworks Incident Response Plan, which has been reviewed and approved by a FedRAMP-recognized Third Party Assessment Organization (3PAO). Additionally, DFARS (d) requires that if a contractor plans to use an external cloud service provider (CSP) to handle covered defense information (CDI), the CSP must meet security requirements equivalent to the FedRAMP Moderate baseline and comply with specific security measures outlined in sections (c) through (g) of the clause. This means the contractor is responsible for ensuring that the CSP meets these security standards when handling CDI. CMMC 2.0 encompasses all the requirements of DFARS 7012 and goes beyond by adding maturity levels and a formal third-party assessment process. Therefore, contractors need to comply with both DFARS 7012 and the specific requirements for their CMMC maturity level, with CMMC 2.0 essentially encompassing and expanding upon the DFARS 7012 framework.

One must clearly understand what it means to be “equivalent” in order to be equivalent. Fortunately, the DoD recently released the FedRAMP Equivalency Memo, which provides guidance and clarification to what it means to be equivalent. According to the memo, to be considered FedRAMP Moderate equivalent, CSOs must achieve 100% compliance with the latest FedRAMP Moderate security control baseline via an assessment conducted by a FedRAMP-recognized Third Party Assessment Organization, provide a body of evidence to the contractor (including the System Security Plan, Security Assessment Plan, Security Assessment Report performed by the 3PAO, and Plan of Action and Milestones), and comply with DFARS 252.204-7012 requirements for cyber incident reporting, malicious software, media preservation and protection, access to additional information and equipment necessary for forensic analysis, and cyber incident damage assessment.

Given this clarification, there are three questions you must ask your CSP provider to ensure they comply:

1. Have you had an assessment conducted by a FedRAMP-recognized Third Party Assessment Organization?
   If they cannot do this, they are not actually considered equivalent.
2. Can you provide a body of evidence of this assessment (including the System Security Plan, Security Assessment Plan, Security Assessment Report performed by the 3PAO, and Plan of Action and Milestones)?
   If they cannot do this, they are not actually considered equivalent.
3. Can you show me how you are compliant with DFARS 252.204-7012 requirements for cyber incident reporting, malicious software, media preservation and protection, access to additional information and equipment necessary for forensic analysis, and cyber incident damage assessment?
   If they cannot do this, they are not actually considered equivalent.

For contractors handling sensitive government data and striving to maintain compliance with stringent defense cybersecurity regulations, validating appropriate security capabilities can present an arduous task. However, by leveraging partners who have already completed rigorous certifications like FedRAMP Moderate Authorized, organizations can efficiently verify security posture rather than attempting extensive independent control evaluations. With a long-standing history of compliance certifications like FedRAMP, FIPS, and ISO 27001, 27017, and 27018, Kiteworks enables contractors to quickly validate conformity with standards like DFARS 7012 and CMMC 2.0, speeding procurements and avoiding risks from noncompliant “equivalent” partners. With feature-rich capabilities secured via continuous independent testing and auditing, Kiteworks’ solutions empower contractors to meet DoD requirements with confidence while strengthening data protections through leveraging a mature, battle-tested platform.