Cost Analysis of RMF and FISMA Compliance

This technical report analyzes the federal costs associated with executing the Risk Management Framework (RMF) and the Federal Information Security Modernization Act (FISMA) compliance processes. It estimates that annual federal spending on RMF compliance ranges from $5 billion to $12 billion, with manual labor being the primary cost driver. The report details how the TECTIX platform automates aspects of the RMF package review process, significantly reducing review times from two weeks to one day. The analysis includes a case study from the U.S. Army Materiel Command, demonstrating potential annual savings of up to $1.5 billion through automation. The report also discusses the uneven progress of federal RMF automation efforts and emphasizes that while FISMA compliance cannot be eliminated, intelligent process automation can reduce costs and improve efficiency. The findings are based on a triangulated methodology using various models to estimate compliance costs across federal agencies.