What Defines an Effective Government Contractor Data Protection Policy?

The White House is prioritizing IT modernization, including data protection policies for contractors doing business with the federal government. Today, two-thirds of federal agencies have adopted cloud services to stay current with technology and to improve their data protection strategies.

For government contractors, including cloud providers, complying with data protection policies is paramount as they handle sensitive information critical to national security, public welfare and individual privacy. An effective data protection policy is essential to safeguard this information from breaches, unauthorized access and misuse. But what is the current gold standard for these requirements? How is this move toward cloud services for the federal government impacting data protection policies for U.S. contractors?

Federal Cloud Data Protection Policies for Contractors

FedRAMP stands for the Federal Risk and Authorization Management Program. It is a government program to assess, authorize and continuously monitor cloud service providers (CSPs) offering products and services to federal agencies in the United States. The primary goal of FedRAMP is to ensure the security and privacy of the federal data stored and processed in the cloud.

Before the establishment of FedRAMP in 2011, federal agencies faced many challenges related to assessing and authorizing the security of cloud service providers. This lack of standardization led to increased costs, delays in adopting cloud services, and varying levels of security across agencies.

FedRAMP launched to address these issues by providing a standardized approach to security assessment, authorization and continuous monitoring of cloud service providers. It streamlines the cloud security assessment process, reduces redundancy, and allows federal agencies to use pre-authorized cloud service providers with confidence, saving time and resources. The FedRAMP website says, “FedRAMP empowers agencies to use modern cloud technologies, emphasizing security and protection of federal information.”

What Are the Key Features of FedRAMP?

FedRAMP’s stated goals are to grow cloud usage, and there is evidence that this government data protection policy is changing the hearts and minds of government tech teams. A recent FedScoop survey shows that some generally accepted concerns about cloud computing are yielding to the belief that the cloud offers a better data protection strategy than traditional on-premises applications.

The survey showed:

• 50% of those surveyed say they trust FedRAMP-approved cloud service providers for research (51%), financial and business operations (47%) and HR information (47%).
• More than one-third (36%) of respondents report they trust classified and sensitive data to their cloud providers.

Key to these changing standards is the FedRAMP requirements for government contractors, widely viewed as the current standard in data protection policies. The key features of the FedRAMP data protection policy include:

• Standardized Security Requirements: FedRAMP establishes security requirements that cloud service providers must meet. These requirements are based on NIST (National Institute of Standards and Technology) Special Publication 800-53, “Security and Privacy Controls for Federal Information Systems and Organizations.”
• Three Security Impact Levels: FedRAMP categorizes cloud services into three impact levels – low, moderate, and high – based on the potential impact on the confidentiality, integrity, and availability of federal data. Each level has specific security requirements that CSPs must meet.
• Third-Party Assessment Organizations (3PAOs): To achieve FedRAMP certification, cloud service providers and contractors must undergo a rigorous security assessment from an accredited Third-Party Assessment Organization (3PAO). The 3PAO evaluates the CSP’s security controls and ensures compliance with FedRAMP requirements.
• Authorization Process: After completing the security assessment, the cloud service provider submits the assessment results and other required documentation to the FedRAMP Program Management Office (PMO). Federal agencies interested in using the cloud service can leverage the FedRAMP authorization package to streamline their security authorization process.
• Continuous Monitoring: FedRAMP is not a one-time certification; this data protection policy emphasizes continuous monitoring of cloud services to ensure ongoing compliance with security standards. CSPs must regularly report on their security posture, and the 3PAO may conduct periodic assessments to validate the security controls.
• Reuse of Authorizations: Once a cloud service provider achieves FedRAMP certification, other federal agencies can reuse the authorization, eliminating redundant security assessments. This “do once, use many times” approach promotes efficiency and cost savings.

FedRAMP certification has become crucial for cloud service providers and contractors seeking to do business with federal agencies. The FedScoop survey shows it has been effective in instilling trust among government customers by demonstrating a commitment to robust security practices, enabling the government to take advantage of the benefits of cloud computing while ensuring the protection of sensitive data and systems.

Other Data Protection Strategies When Hiring Federal Contractors

While FedRAMP focuses on cloud modernization, government entities still leverage on-premises hardware and software. Data protection strategies must comply with all federal privacy rules, such as:

• General Data Protection Regulation (GDPR)
• Health Insurance Portability and Accountability Act (HIPAA)
• Federal Information Security Management Act (FISMA)
• And more

In addition to these and other compliance rules, data protection policies should follow these guidelines for federal contractors:

• Data protection policies must be comprehensive in scope.
• These rules must include a risk assessment to identify contractor threats and vulnerabilities.
• It must define clear access controls and authorization mechanisms for accessing data.
• The policy should also define the contractor’s response to a data breach.

The Role of Zero Trust Policies in Safeguarding Government Data

“Never trust and always verify” is the key principle of zero trust cybersecurity. Government contractors, given the sensitive data they have access to, should strongly consider adopting a zero-trust model of cybersecurity that mandates that every interaction between an end-user and an app, file or network be verified before it is allowed to proceed. While zero trust cybersecurity is invaluable in protecting sensitive data and reducing data breaches, it may require employee awareness training in order to ensure that teams are following zero trust principles.

Organizations may inadvertently overlook employee training and awareness as a requirement for an effective data protection policy. Government contractors should invest in regular training programs to educate their workforce about the importance of data protection, the risks associated with mishandling data, and the proper procedures for safeguarding sensitive information. This year, the federal government passed requirements that contractors must meet training requirements outlined in the Privacy Act of 1974 related to handling personally identifiable information (PII).

Data security requirements for government contractors vary depending on the type of data contractors handle and the nature of their contractual agreements. To ensure compliance, federal contractors must stay up to date with the latest regulations and guidance from government agencies.

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Red River is a leading provider of services to government organizations, including the Department of Defense (DOD) and the Department of the Navy. With more than 25 years of IT expertise, we are a highly respected partner of federal organizations, fully compliant and highly experienced. Contact us to find out more. If you want to learn more about data protection for federal agencies and governmental contractors, click the link below to read our free ebook.

Q&A

Why is it important for government contractors to comply with federal data protection rules?

Government contractors have a responsibility to follow data protection policies to protect national security and the privacy of U.S. citizens. Adherence to these rules ensures the safeguarding of sensitive information, such as classified data and personally identifiable details. fostering national security and protecting citizens’ privacy. Compliance also mitigates the risk of data breaches and cyber-attacks, reducing potential financial losses and reputational damage to contractors and the government. Compliance also maintains the trust between contractors and the government, creating successful partnerships based on accountability and reliability. Finally, meeting regulatory requirements demonstrates a commitment to ethical practices, upholding the principles of transparency and responsible governance.

What is the NIST Cybersecurity Framework?

The National Institute of Standards and Technology (NIST) Cybersecurity Framework provides guidelines for improving cybersecurity risk management across critical infrastructure, including federal contractors. Contractors may be required to align their security practices with this framework to mitigate cybersecurity risks.