CSP (Cloud Service Provider)

A Cloud Service Provider (CSP) is a commercial entity that offers cloud-based computing services—such as data storage, servers, networking, applications, and analytics—accessible over the internet. In the federal procurement context, a CSP is a vendor that provides Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), or hybrid cloud solutions to government agencies.

CSPs play a foundational role in federal IT modernization efforts. Their services support everything from agency email systems and remote work platforms to high-performance computing, data analytics, and mission-critical systems. In the GSA ecosystem, CSPs must meet strict requirements related to security, compliance, and performance before their offerings can be made available to government buyers.

Role of CSPs in Federal Procurement

Federal agencies rely on CSPs to:

  • Modernize legacy systems by migrating to scalable and flexible cloud environments
  • Increase operational efficiency through automation, resource pooling, and rapid scalability
  • Enhance mobility and collaboration via web-based applications and services
  • Reduce capital expenditures through subscription-based pricing models
  • Comply with federal security requirements, such as FedRAMP and Zero Trust Architecture mandates

Agencies typically acquire cloud services from CSPs through contract vehicles managed by GSA or other authorized procurement channels.

CSPs and FedRAMP Compliance

Before a CSP can offer services to federal agencies, they must obtain an authorization through the Federal Risk and Authorization Management Program (FedRAMP). FedRAMP is a government-wide compliance framework that standardizes the security assessment of cloud products and services.

There are three FedRAMP impact levels—Low, Moderate, and High—based on the sensitivity of data being handled. CSPs must:

  • Undergo a third-party security assessment by an accredited 3PAO (Third-Party Assessment Organization)
  • Implement continuous monitoring and regular reporting
  • Maintain security controls aligned with NIST standards
  • List their authorized services on the FedRAMP Marketplace

GSA works closely with FedRAMP to ensure that only secure and verified CSPs can offer services through the Multiple Award Schedule (MAS) and other acquisition vehicles.

GSA Cloud Procurement Channels for CSPs

CSPs interested in offering services to the federal government typically do so through GSA-managed contract vehicles, including:

  • GSA Multiple Award Schedule (MAS) under Special Item Number (SIN) 518210C for Cloud and Cloud-Related IT Professional Services
  • Alliant 2 – A GWAC for enterprise-level IT solutions, including cloud integration
  • 8(a) STARS III – A small business contract vehicle that includes cloud services
  • Polaris (upcoming) – Will feature cloud solutions with continuous on-ramping

CSPs may also be involved in hybrid proposals that include both cloud services and professional implementation or migration support.

Requirements for CSPs Contracting Through GSA

To become an approved CSP in the GSA acquisition environment, a vendor must:

  • Hold an active GSA Schedule contract or participate in a GWAC or BPA
  • Offer FedRAMP-authorized cloud products or services in process of authorization
  • Demonstrate past performance and pricing transparency
  • Comply with cybersecurity regulations, including FISMA, NIST SP 800-53, and applicable executive orders
  • Provide labor categories and pricing models that support federal acquisition structures

CSPs must also submit Technical Proposals, Pricing Disclosures, and other documentation when applying to add cloud offerings to their GSA Schedule.

Key Considerations for Agencies Choosing CSPs

When selecting a Cloud Service Provider, government buyers consider several factors:

  • FedRAMP authorization level required for the data involved
  • Service-level agreements (SLAs) and uptime guarantees
  • Data portability and exit strategies
  • Integration with existing government systems
  • Support and training offerings
  • Ability to meet specific compliance or mission needs, such as CUI, HIPAA, or ITAR requirements

GSA provides tools like GSA eLibrary, GSA Advantage!, and the FedRAMP Marketplace to help agencies evaluate and compare CSPs.

Examples of CSPs in the Federal Space

Some well-known CSPs that serve the federal government include:

  • Amazon Web Services (AWS)
  • Microsoft Azure
  • Google Cloud Platform (GCP)
  • Oracle Cloud Infrastructure (OCI)
  • IBM Cloud
  • Salesforce Government Cloud

Each of these providers offers FedRAMP-authorized services and has experience working with federal, defense, and civilian agencies.

Conclusion

A Cloud Service Provider (CSP) is a critical partner in the federal government’s digital transformation efforts. Through GSA-managed contract vehicles and strict compliance frameworks like FedRAMP, CSPs enable agencies to modernize securely, efficiently, and at scale. Understanding how CSPs operate within the federal acquisition landscape is essential for both government buyers and vendors seeking to compete in this rapidly evolving sector.

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