Microsoft Office 365 has been granted a L2 Impact Level Provisional Authority (PA). This L2 PA is for the Office 365 for Enterprises and Office 365 for Government offerings. The announcement is here - http://disa.mil/News/PressResources/2015/Commercial-Cloud-Service
This PA is predicated on the fact that Office 365 has a FedRAMP Agency ATO which is listed here - https://www.fedramp.gov/marketplace/compliant-systems/microsoft-office-365-multi-tenant-supporting-services-including-azure-active-directory-leverageing-microsoft-azure-and-cloud-infrastructure/
If you want to read more, you can review the DoD Cloud Computing Security Requirements Guide (SRG) located here - http://iase.disa.mil/cloud_security/Pages/index.aspx
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