Federal Secure Cloud Improvement and Jobs Act of 2021

To amend title 44, United States Code, to establish the Federal Risk and Authorization Management Program within the General Services Administration, and for other purposes. 1. Short title This Act may be cited as the Federal Secure Cloud Improvement and Jobs Act of 2021 2. Findings Congress finds the following: (1) Ensuring that the Federal Government can securely leverage cloud computing products and services is key to expediting the modernization of legacy information technology systems, increasing cybersecurity within and across departments and agencies, and supporting the continued leadership of the United States in technology innovation and job creation. (2) According to independent analysis, as of calendar year 2019, the size of the cloud computing market had tripled since 2004, enabling more than 2,000,000 jobs and adding more than $200,000,000,000 to the gross domestic product of the United States. (3) The Federal Government, across multiple presidential administrations and Congresses, has continued to support the ability of agencies to move to the cloud, including through— (A) President Barack Obama’s Cloud First Strategy (B) President Donald Trump’s Cloud Smart Strategy (C) the prioritization of cloud security in Executive Order 14208 (86 Fed. Reg. 26633; relating to improving the Nation’s cybersecurity), which was issued by President Joe Biden; and (D) more than a decade of appropriations and authorization legislation that provides agencies with relevant authorities and appropriations to modernize on-premises information technology systems and more readily adopt cloud computing products and services. (4) Since it was created in 2011, the Federal Risk and Authorization Management Program (referred to in this section as FedRAMP (5) According to data from the General Services Administration, as of the end of fiscal year 2021, there were 239 cloud providers with FedRAMP authorizations, and those authorizations had been reused more than 2,700 times across various agencies. (6) Providing a legislative framework for FedRAMP and new authorities to the General Services Administration, the Office of Management and Budget, and Federal agencies will— (A) improve the speed at which new cloud computing products and services can be securely authorized; (B) enhance the ability of agencies to effectively evaluate FedRAMP authorized providers for reuse; (C) reduce the costs and burdens to cloud providers seeking a FedRAMP authorization; and (D) provide for more robust transparency and dialogue between industry and the Federal Government to drive stronger adoption of secure cloud capabilities, create jobs, and reduce wasteful legacy information technology. 3. Title 44 amendments (a) Amendment Chapter 36 3607. Definitions (a) In general Except as provided under subsection (b), the definitions under sections 3502 and 3552 apply to this section through section 3616. (b) Additional definitions In this section through section 3616: (1) Cloud computing The term cloud computing (2) Cloud service provider The term cloud service provider (3) FedRAMP The term FedRAMP (4) FedRAMP authorization The term FedRAMP authorization (A) completed a FedRAMP authorization process, as determined by the Administrator of General Services; or (B) received a FedRAMP provisional authorization to operate, as determined by the FedRAMP Board. (5) FedRAMP authorization package The term FedRAMP authorization package (6) FedRAMP Board The term FedRAMP Board (7) Independent assessment organization The term independent assessment organization (8) Secretary The term Secretary 3608. Federal Risk and Authorization Management Program There is established within the General Services Administration the Federal Risk and Authorization Management Program. The Administrator of General Services, subject to section 3613, shall establish a Government-wide program that provides a standardized, reusable approach to security assessment and authorization for cloud computing products and services that process unclassified information used by agencies. 3609. Roles and responsibilities of the General Services Administration (a) Roles and responsibilities The Administrator of General Services shall— (1) in consultation with the Secretary, develop, coordinate, and implement a process to support agency review, reuse, and standardization, where appropriate, of security assessments of cloud computing products and services, including, as appropriate, oversight of continuous monitoring of cloud computing products and services, pursuant to guidance issued by the Director pursuant to section 3613; (2) establish processes and identify criteria consistent with guidance issued by the Director under section 3613 to make a cloud computing product or service eligible for a FedRAMP authorization and validate whether a cloud computing product or service has a FedRAMP authorization; (3) develop and publish templates, best practices, technical assistance, and other materials to support the authorization of cloud computing products and services and increase the speed, effectiveness, and transparency of the authorization process, consistent with standards established by the Director of the National Institute of Standards and Technology and relevant statutes; (4) grant FedRAMP authorizations to cloud computing products and services consistent with the guidance and direction of the FedRAMP Board; (5) establish and maintain a public comment process for proposed guidance and other FedRAMP directives that may have a direct impact on cloud service providers and agencies before the issuance of such guidance or other FedRAMP directives; (6) coordinate with the FedRAMP Board, the Director of the Cybersecurity and Infrastructure Security Agency, and other entities identified by the Administrator of General Services, with the concurrence of the Director and the Secretary, to establish and regularly update a framework for continuous monitoring under section 3553; (7) provide a secure mechanism for storing and sharing necessary data, including FedRAMP authorization packages, to enable better reuse of such packages across agencies, including making available any information and data necessary for agencies to fulfill the requirements of section 3612; (8) provide regular updates to applicant cloud service providers on the status of any cloud computing product or service during an assessment process; (9) regularly review, in consultation with the FedRAMP Board, the costs associated with the independent assessment services of the third-party organizations described in section 3611; (10) support the Federal Secure Cloud Advisory Committee established pursuant to section 3616; and (11) take such other actions as the Administrator of General Services may determine necessary to carry out FedRAMP. (b) Website (1) In general The Administrator of General Services shall maintain a public website to serve as the authoritative repository for FedRAMP, including the timely publication and updates for all relevant information, guidance, determinations, and other materials required under subsection (a). (2) Criteria and process for FedRAMP authorization priorities The Administrator of General Services shall develop and make publicly available on the website described in paragraph (1) the criteria and process for prioritizing and selecting cloud computing products and services that will receive a FedRAMP authorization, in consultation with the FedRAMP Board and the Chief Information Officers Council. (c) Evaluation of automation procedures (1) In general The Administrator of General Services, in coordination with the Secretary, shall assess and evaluate available automation capabilities and procedures to improve the efficiency and effectiveness of the issuance of FedRAMP authorizations, including continuous monitoring of cloud computing products and services. (2) Means for automation Not later than 1 year after the date of enactment of this section, and updated regularly thereafter, the Administrator of General Services shall establish a means for the automation of security assessments and reviews. (d) Metrics for authorization The Administrator of General Services shall establish annual metrics regarding the time and quality of the assessments necessary for completion of a FedRAMP authorization process in a manner that can be consistently tracked over time in conjunction with the periodic testing and evaluation process pursuant to section 3554 in a manner that minimizes the agency reporting burden. 3610. FedRAMP Board (a) Establishment There is established a FedRAMP Board to provide input and recommendations to the Administrator of General Services regarding the requirements and guidelines for, and the prioritization of, security assessments of cloud computing products and services. (b) Membership The FedRAMP Board shall consist of not more than 7 senior officials or experts from agencies appointed by the Director, in consultation with the Administrator of General Services, from each of the following: (1) The Department of Defense. (2) The Department of Homeland Security. (3) The General Services Administration. (4) Such other agencies as determined by the Director, in consultation with the Administrator of General Services. (c) Qualifications Members of the FedRAMP Board appointed under subsection (b) shall have technical expertise in domains relevant to FedRAMP, such as— (1) cloud computing; (2) cybersecurity; (3) privacy; (4) risk management; and (5) other competencies identified by the Director to support the secure authorization of cloud services and products. (d) Duties The FedRAMP Board shall— (1) in consultation with the Administrator of General Services, serve as a resource for best practices to accelerate the process for obtaining a FedRAMP authorization; (2) establish and regularly update requirements and guidelines for security authorizations of cloud computing products and services, consistent with standards established by the Director of the National Institute of Standards and Technology, to be used in the determination of FedRAMP authorizations; (3) monitor and oversee, to the greatest extent practicable, the processes and procedures by which agencies determine and validate requirements for a FedRAMP authorization, including periodic review of the agency determinations described in section 3612(b); (4) ensure consistency and transparency between agencies and cloud service providers in a manner that minimizes confusion and engenders trust; and (5) perform such other roles and responsibilities as the Director may assign, with concurrence from the Administrator of General Services. (e) Determinations of demand for cloud computing products and services The FedRAMP Board may consult with the Chief Information Officers Council to establish a process, which may be made available on the website maintained under section 3609(b), for prioritizing and accepting the cloud computing products and services to be granted a FedRAMP authorization. 3611. Independent assessment organizations (a) Requirements for accreditation The Administrator of General Services may, consistent with guidance issued by the Director, determine the requirements for accreditation of a third-party organization to perform independent assessments and other activities that will improve the overall performance of FedRAMP and reduce the cost of FedRAMP authorizations for cloud service providers. Such requirements may include developing or requiring certification programs for individuals employed by the third-party organization seeking accreditation. (b) Certification The Administrator of General Services may accredit any third-party organization that meets the requirements for accreditation determined under subsection (a). If accredited pursuant to the requirements determined under subsection (a), a certified independent assessment organization may assess, validate, and attest to the quality and compliance of security assessment materials provided by cloud service providers. 3612. Roles and responsibilities of agencies (a) In general In implementing the requirements of FedRAMP, the head of each agency shall, consistent with guidance issued by the Director pursuant to section 3613— (1) promote the use of cloud computing products and services that meet FedRAMP security requirements and other risk-based performance requirements as determined by the Director, in consultation with the Secretary; (2) confirm whether there is a FedRAMP authorization in the secure mechanism provided under section 3609(a)(7) before beginning the process of granting a FedRAMP authorization for a cloud computing product or service; (3) to the extent practicable, for any cloud computing product or service the agency seeks to authorize that has received a FedRAMP authorization, use the existing assessments of security controls and materials within the FedRAMP authorization package; and (4) provide data and information required to the Director pursuant to section 3613 to determine how agencies are meeting metrics established by the Administrator of General Services. (b) Attestation Upon completing an assessment or authorization activity with respect to a particular cloud computing product or service, if an agency determines that the information and data the agency has reviewed under paragraph (2) or (3) of subsection (a) is wholly or substantially deficient for the purposes of performing an authorization of the cloud computing product or service, the head of the agency shall document as part of the resulting FedRAMP authorization package the reasons for this determination. (c) Submission of authorizations To operate required Upon issuance of an agency authorization to operate based on a FedRAMP authorization, the head of the agency shall provide a copy of its authorization to operate letter and any supplementary information required pursuant to section 3609(a) to the Administrator of General Services. (d) Submission of policies required Not later than 180 days after the date on which the Director issues guidance in accordance with section 3613, the head of each agency, acting through the agency chief information officer of the agency, shall submit to the Director all agency policies relating to the authorization of cloud computing products and services. (e) Presumption of adequacy (1) In general The assessment of security controls and materials within the authorization package for a FedRAMP authorization shall be presumed adequate for use in an agency authorization to operate cloud computing products and services. (2) Information security requirements The presumption under paragraph (1) does not modify or alter— (A) the responsibility of any agency to ensure compliance with subchapter II of chapter 35 for any cloud computing products or services used by the agency; or (B) the authority of the head of any agency to make a determination that there is a demonstrable need for additional security requirements beyond the security requirements included in a FedRAMP authorization for a particular control implementation. 3613. Roles and responsibilities of the Office of Management and Budget (a) Roles and responsibilities The Director shall— (1) in consultation with the Administrator of General Services and the Secretary, issue guidance that— (A) specifies the categories or characteristics of cloud computing products and services that are within the scope of FedRAMP; (B) includes requirements for agencies to obtain a FedRAMP authorization when operating a cloud computing product or service described in subparagraph (A) as a Federal information system; and (C) encompasses, to the greatest extent practicable, all necessary and appropriate cloud computing products and services; (2) issue guidance describing additional responsibilities of FedRAMP and the FedRAMP Board to accelerate the adoption of secure cloud computing services by the Federal Government; (3) oversee the effectiveness of FedRAMP and the FedRAMP Board, including the compliance by the FedRAMP Board with the duties described in section 3610(d); and (4) to the greatest extent practicable, encourage and promote consistency of the assessment, authorization, adoption, and use of cloud computing products and services within and across agencies. 3614. Authorization of appropriations for FedRAMP There is authorized to be appropriated to the Administrator of General Services $20,000,000 for each fiscal year for FedRAMP and the FedRAMP Board. 3615. Reports to congress; GAO report (a) Reports to congress Not later than 1 year after the date of enactment of this section, and annually thereafter, the Director shall submit to the Committee on Oversight and Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report that includes the following: (1) During the preceding year, the status, efficiency, and effectiveness of the General Services Administration under section 3609 and agencies under section 3612 and in supporting the speed, effectiveness, sharing, reuse, and security of authorizations to operate for cloud computing products and services. (2) Progress towards meeting the metrics required under section 3609(d). (3) Data on FedRAMP authorizations. (4) The average length of time to issue FedRAMP authorizations. (5) The number of FedRAMP authorizations submitted, issued, and denied for the preceding year. (6) A review of progress made during the preceding year in advancing automation techniques to securely automate FedRAMP processes and to accelerate reporting under this section. (7) The number and characteristics of authorized cloud computing products and services in use at each agency consistent with guidance provided by the Director under section 3613. (b) GAO report Not later than 180 days after the date of enactment of this section, the Comptroller General of the United States shall publish a report that includes an assessment of the following: (1) The costs incurred by agencies and cloud service providers relating to the issuance of FedRAMP authorizations. (2) The extent to which agencies have processes in place to continuously monitor cloud computing products and services operating as Federal information systems. (3) How often and for which categories of products agencies use FedRAMP authorizations. (4) The unique costs and potential burdens incurred by cloud computing companies that are small business concerns (as defined in section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) 3616. Federal Secure Cloud Advisory Committee (a) Establishment, purposes, and duties (1) Establishment There is established a Federal Secure Cloud Advisory Committee (referred to in this section as the Committee (2) Purposes The purposes of the Committee are the following: (A) To examine the operations of FedRAMP and determine ways that authorization processes can continuously be improved, including the following: (i) Measures to increase agency reuse of FedRAMP authorizations. (ii) Proposed actions that can be adopted to reduce the burden, confusion, and cost associated with FedRAMP authorizations for cloud service providers. (iii) Measures to increase the number of FedRAMP authorizations for cloud computing services offered by small businesses concerns (as defined by section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) (iv) Proposed actions that can be adopted to reduce the burden and cost of FedRAMP authorizations for agencies. (B) Collect information and feedback on agency compliance with and implementation of FedRAMP requirements. (C) Serve as a forum that facilitates communication and collaboration among the FedRAMP stakeholder community. (3) Duties The duties of the Committee include providing advice and recommendations to the Administrator of General Services, the FedRAMP Board, and agencies on technical, financial, programmatic, and operational matters regarding secure adoption of cloud computing products and services. (b) Members (1) Composition The Committee shall be comprised of not more than 15 members who are qualified representatives from the public and private sectors, appointed by the Administrator of General Services, in consultation with the Director, as follows: (A) The Administrator of General Services or the Administrator of General Services’s designee, who shall be the Chair of the Committee. (B) At least 1 representative each from the Cybersecurity and Infrastructure Security Agency and the National Institute of Standards and Technology. (C) At least 2 officials who serve as the Chief Information Security Officer within an agency, who shall be required to maintain such a position throughout the duration of their service on the Committee. (D) At least 1 official serving as Chief Procurement Officer (or equivalent) in an agency, who shall be required to maintain such a position throughout the duration of their service on the Committee. (E) At least 1 individual representing an independent assessment organization. (F) No fewer than 5 representatives from unique businesses that primarily provide cloud computing services or products, including at least two representatives from a small business concern (as defined by section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) (G) At least 2 other representatives of the Federal Government as the Administrator of General Services determines necessary to provide sufficient balance, insights, or expertise to the Committee. (2) Deadline for appointment Each member of the Committee shall be appointed not later than 90 days after the date of enactment of this section. (3) Period of appointment; vacancies (A) In general Each non-Federal member of the Committee shall be appointed for a term of 3 years, except that the initial terms for members may be staggered 1-, 2-, or 3-year terms to establish a rotation in which one-third of the members are selected each year. Any such member may be appointed for not more than 2 consecutive terms. (B) Vacancies Any vacancy in the Committee shall not affect its powers, but shall be filled in the same manner in which the original appointment was made. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member’s term until a successor has taken office. (c) Meetings and rules of procedures (1) Meetings The Committee shall hold not fewer than 3 meetings in a calendar year, at such time and place as determined by the Chair. (2) Initial meeting Not later than 120 days after the date of enactment of this section, the Committee shall meet and begin the operations of the Committee. (3) Rules of procedure The Committee may establish rules for the conduct of the business of the Committee if such rules are not inconsistent with this section or other applicable law. (d) Employee status (1) In general A member of the Committee (other than a member who is appointed to the Committee in connection with another Federal appointment) shall not be considered an employee of the Federal Government by reason of any service as such a member, except for the purposes of section 5703 of title 5, relating to travel expenses. (2) Pay not permitted A member of the Committee covered by paragraph (1) may not receive pay by reason of service on the Committee. (e) Applicability to the federal advisory committee act Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Committee. (f) Detail of employees Any Federal Government employee may be detailed to the Committee without reimbursement from the Committee, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption. (g) Postal services The Committee may use the United States mails in the same manner and under the same conditions as agencies. (h) Reports (1) Interim reports The Committee may submit to the Administrator of General Services and Congress interim reports containing such findings, conclusions, and recommendations as have been agreed to by the Committee. (2) Annual reports Not later than 540 days after the date of enactment of this section, and annually thereafter, the Committee shall submit to the Administrator of General Services and Congress a final report containing such findings, conclusions, and recommendations as have been agreed to by the Committee. . (b) Technical and conforming amendment The table of sections for chapter 36 3607. Definitions. 3608. Federal Risk and Authorization Management Program. 3609. Roles and responsibilities of the General Services Administration. 3610. FedRAMP Board. 3611. Independent assessment organizations. 3612. Roles and responsibilities of agencies. 3613. Roles and responsibilities of the Office of Management and Budget. 3614. Authorization of appropriations for FedRAMP. 3615. Reports to congress; GAO report. 3616. Federal Secure Cloud Advisory Committee. . (c) Sunset (1) In general Effective on the date that is 5 years after the date of enactment of this Act, chapter 36 (2) Conforming amendment Effective on the date that is 5 years after the date of enactment of this Act, the table of sections for chapter 36 (d) Rule of construction Nothing in this section or any amendment made by this section shall be construed as altering or impairing the authorities of the Director of the Office of Management and Budget or the Secretary of Homeland Security under subchapter II of chapter 35

Summary: Federal Secure Cloud Improvement and Jobs Act of 2021 This bill provides statutory authority for the Federal Risk and Authorization Management Program (FedRAMP) within the General Services Administration (GSA). FedRAMP is a government-wide program that provides a standardized, reusable approach to security assessment and authorization for cloud computing products and services that process unclassified information used by agencies. The bill establishes a FedRAMP Board to provide input and recommendations to the GSA regarding the requirements and guidelines for, and the prioritization of, security assessments of cloud computing products and services. The GSA may determine whether FedRAMP may use an independent assessment service to analyze, validate, and attest to the quality and compliance of security assessment materials that pertain to cloud computing products and services. An independent assessment service that performs such work must annually report to GSA about any foreign interest in, influence of, or control of its service. The Government Accountability Office must publish a report that, among other requirements, includes an assessment of the costs incurred by agencies and cloud service providers related to the issuance of FedRAMP authorizations. The bill establishes the Federal Secure Cloud Advisory Committee.