What Is FedRAMP Moderate Equivalency — And Why It Matters Now?

As cybersecurity threats continue to grow and federal agencies respond with increased compliance requirements, government contractors are under increasing pressure to protect sensitive data, especially when working with the Department of Defense (DoD). Because many government contractors utilize cloud services to conduct their business, they should be aware of the FedRAMP requirements for cloud service providers to support compliance with CMMC (Cybersecurity Maturity Model Certification) compliance.

For many contractors — particularly small and mid-sized businesses — navigating these requirements can feel overwhelming. That’s why Deltek’s recent announcement of completing its FedRAMP Moderate Equivalency assessment for its Costpoint GovCon Cloud Moderate (GCCM) offering is such a pivotal moment. It not only allows customers to validate the security of the platform but also gives contractors a trusted solution that meets the latest cybersecurity compliance requirements.

In this Q&A with Senior Manager of Cloud Solutions, Michael Greenman, we explore what this announcement means, how it sets Deltek’s Costpoint GCCM solution apart from other SaaS ERP offerings, and what questions government contractors should be asking as they evaluate ERP vendors in an increasingly compliance-driven landscape.

1. What does FedRAMP Moderate Equivalency mean for Costpoint GCCM and our DoD-focused government contractors?

Successfully completing our FedRAMP Moderate Equivalency assessment for Costpoint GCCM is a significant milestone for Deltek and our customers who support the DoD as a prime or subcontractor. It means that contractors leveraging this full-suite platform can have total confidence knowing that our flagship SaaS ERP solution meets the very stringent cybersecurity standards of the DoD’s CMMC program and is ready for the anticipated requirements of the civilian agencies as well.

For decades, government contractors have relied on Deltek not only for our deep functional capabilities and compliance with federal contracting requirements, but also for our commitment to innovation and security. This latest demonstration of cybersecurity compliance commitment strengthens our offering even further—making Deltek’s Costpoint GCCM solution not just able to support compliance requirements but differentiates our customers in a highly competitive market.

2. Can you explain FedRAMP Moderate Equivalency in plain language for government contractors who may not be compliance experts?

In simple terms, FedRAMP Moderate Equivalency is a means of proof for cloud software providers, like Deltek, that we can support the cybersecurity compliance requirements of CMMC. This helps our customers as they prepare for their mandatory compliance assessments.

Soon, any government contractor—prime or subcontractor—that wants to win DoD contracts will need to be CMMC certified. The level 2 and level 3 certifications require using only cloud providers who demonstrate FedRAMP Moderate or higher security when storing, processing or transmitting Controlled Unclassified Information (CUI). Customers can validate that Deltek meets this requirement with the completion of its FedRAMP Moderate Equivalency assessment for Deltek’s Costpoint GCCM solution. This is a rare and important distinction that gives our customers a huge advantage inachieving their cybersecurity compliance goals.

3. What truly sets Deltek’s Costpoint GCCM apart from other ERP vendors claiming to serve government contractors?

What sets Deltek’s Costpoint GCCM apart is the ability to demonstrate compliance with the Department of Defense’s cybersecurity requirements for cloud service providers. With the successful completion of the FedRAMP Moderate Equivalency assessment, Costpoint GCCM now fully supports the cybersecurity requirements needed for CMMC compliance (a Body of Evidence as defined by the DoD), which is a critical advantage for government contractors pursuing DoD contracts.

Unlike many ERP vendors that claim to serve this market but fall short on compliance, Deltek delivers a validated, secure and purpose-built solution. Our customers get the full power of Costpoint’s industry-leading capabilities, with the added assurance that they’re data is protected by using a platform designed to keep them ahead of evolving federal cybersecurity mandates.

4. Which types of businesses should be thinking about Costpoint GCCM — both today and as cybersecurity requirements evolve?

Today, the customers who benefit most from Costpoint GCCM are Department of Defense contractors. These businesses will face the highest levels of scrutiny when it comes to cybersecurity and compliance, and Costpoint GCCM is purpose-built to meet those demands.

In fact, Deltek began investing in the security foundation of Costpoint GCCM years ago, anticipating the direction the industry was heading. That foresight is now paying off. As cybersecurity regulations continue to evolve and expand across all federal agencies — not just the DoD — Costpoint GCCM is positioned to support a broader range of government contractors.

Looking ahead, any contractor working in the federal space will likely need to meet similar security standards. Costpoint GCCM delivers a robust solution that is proven to be secure, reliable, and trusted.

5. In what ways does Costpoint GCCM give smaller government contractors a competitive edge in meeting cybersecurity requirements?

As CMMC requirements roll out, many small and mid-sized government contractors face a tough challenge: they often lack the internal resources or budget to build and maintain the level of cybersecurity that will soon be required. This is expected to drive some consolidation in the industry, as firms without the right infrastructure may struggle to stay competitive.

That’s where Deltek’s Costpoint GCCM solution can become a game-changer. By partnering with a cloud service provider (CSP) that has already completed its FedRAMP Moderate Equivalency assessment, smaller contractors can instantly access enterprise-grade security — without having to build it or maintain it themselves. This levels the playing field with larger firms and positions them to win DoD contracts and, eventually, contracts with other federal agencies as similar requirements expand beyond the DoD.

Even more, Costpoint GCCM makes the small businesses using it much more attractive partners for prime contractors who need to ensure their subcontractors are ready for compliance assessments. In short, investing in a secure, compliant solution like Costpoint GCCM isn’t just about meeting requirements — it’s about staying competitive and opening new doors.

6. Given Costpoint’s long history, how does the FedRAMP Moderate Equivalency announcement reflect Deltek’s ongoing investment in innovation and security?

Security has always been a priority for Deltek — and in today’s environment, it’s more critical than ever. With increasing threats from nation-state actors and cybercriminals targeting federal systems and intellectual property, the government is doubling down on cybersecurity. While change in the public sector can be slow, the direction is clear: secure, cloud-based solutions are the future.

Deltek’s completion of its FedRAMP Moderate Equivalency assessment for Costpoint GCCM is a major step in that direction. It reflects not just a response to current requirements, but a long-term investment in building a secure, future-ready platform for government contractors.

This milestone is part of a broader innovation roadmap — one that continues to prioritize trust, compliance and resilience. With thousands of contractors already relying on Costpoint, this achievement reinforces Deltek’s leadership and signals our continued commitment to a “culture of security” that will guide future enhancements across our product portfolio.

7. What should government contractors look for — and ask — to verify an ERP vendor’s security and compliance claims?

When evaluating ERP vendors, government contractors should go beyond marketing claims and ask for concrete evidence of security and compliance. Here are a few key questions to guide that conversation:

• Can you provide a Shared Responsibility Matrix (SRM)? Also known as a Customer Responsibility Matrix, this document outlines which security responsibilities belong to the vendor and which belong to the customer. It’s a foundational piece of documentation in any secure cloud relationship.
• Do you have a System Security Plan (SSP) available for review? This plan details how the vendor manages and protects sensitive data. It’s a strong indicator of how seriously they take compliance.
• What third-party assessments or certifications can you share? Look for evidence — not just claims. For example, customers can request a copy of a formal letter from an independent assessor and a Body of Evidence package to validate Deltek’s FedRAMP Moderate Equivalency.
• Where can I find your compliance documentation and security resources? A reputable vendor will make this information accessible and transparent — not buried or vague. Deltek provides access to all of our compliance documentation through our Trust Center.

Bottom line: Ask for proof, not just assurances. Whether it’s FedRAMP, CMMC readiness, or other compliance frameworks, the vendors who take security seriously will have the documentation to prove it — and will be ready to share it.

What’s Next?

If you’re a government contractor — especially one working with or planning to work with the DoD — now is the time to evaluate whether your ERP solution is truly ready for the future of federal cybersecurity. Deltek’s Costpoint GCCM isn’t just compliant, it’s built to help you stay competitive, win contracts, and grow with confidence in an increasingly regulated environment. 

Want to learn more? Visit Deltek.com to explore Costpoint GCCM, request documentation, or speak with a specialist about how we can support your compliance journey.