Navigating federal cybersecurity standards can feel like wading through a sea of acronyms and technical jargon. If you’ve ever wondered what FIPS standards are, why they matter, or how they tie into broader compliance frameworks like FISMA or NIST, you’re in the right place.

Think of FIPS (Federal Information Processing Standards) as the federal government’s “rulebook” for handling sensitive information securely. These standards don’t just ensure federal agencies are on the same page, they also extend to contractors and service providers, creating a unified approach to safeguarding sensitive data. Whether it’s encryption, digital signatures, or secure authentication, FIPS lays the groundwork for consistency, reliability, and trust across federal systems.

In this guide, we’ll break down the essentials of FIPS, highlight key standards you need to know, and explain how they fit into the bigger picture of federal cybersecurity.

What are federal information processing standards?

Federal Information Processing Standards (FIPS) are developed by the National Institute of Standards and Technology (NIST) to define how federal agencies and their private sector partners handle and encrypt sensitive information. These standards act as a blueprint for secure technology and cybersecurity practices, covering everything from cryptographic tools to data categorization.

Here’s why FIPS matter:

• Consistency: All federal agencies follow the same security rules, ensuring interoperability.
• Trust: FIPS ensures sensitive data is protected using validated, government-approved methods.
• Relevance: Contractors working with federal agencies must often comply with FIPS, making it essential for businesses in the public sector.

FIPS standards cover a range of topics, like how to securely store data, manage digital signatures, or even format dates and times in federal systems. Think of FIPS as the bridge that connects strong cybersecurity practices with the unique demands of government systems.

Essential FIPS: Key government requirements to know

While there are many FIPS standards, a few stand out as foundational for securing federal information systems. Let’s take a closer look at the most impactful standards to know.

FIPS 199: Standards for Security Categorization of Federal Information and Information Systems

This standard helps agencies classify their information systems based on the sensitivity of the information they handle. It defines three impact levels (low, moderate, and high) for confidentiality, integrity, and availability. These categorizations set the stage for selecting security controls from NIST SP 800-53, making FIPS 199 a cornerstone of federal risk management.

FIPS 201: Personal Identity Verification (PIV) of Federal Employees and Contractors

FIPS 201 is all about secure identification and authentication. It establishes the requirements for PIV cards or badges, which are secure ID cards used to authenticate federal employees and contractors when accessing systems and facilities. By standardizing physical identity verification, it ensures secure access across agencies.

FIPS 140: Security Requirements for Cryptographic Modules

One of the most well-known FIPS is FIPS 140, which deals with cryptography and key encryption. This standard validates cryptographic modules to ensure they meet strict security requirements, giving agencies confidence that their encryption tools are safe to use.

FIPS 186: Digital Signature Standard (DSS)

Digital signatures are key to ensuring the authenticity and integrity of electronic documents. FIPS 186 defines the cryptographic algorithms for creating and verifying these signatures, making it critical for secure communications and transactions in federal systems.

FIPS 197: Advanced Encryption Standard (AES)

One of the most widely used encryption standards, FIPS 197 specifies AES, which protects sensitive data at rest and in transit. It’s a core component of cryptographic modules validated under FIPS 140.

Think of these FIPS as building blocks. FIPS 199 and FIPS 200 establish the foundational rules for classifying and securing systems, while FIPS 140 and FIPS 197 provide the cryptographic tools to secure sensitive information. Meanwhile, FIPS 201 ensures secure identification and authentication, and standards like FIPS 186 enable secure digital transactions.

Each of these standards plays a role in creating a consistent, secure environment for federal systems and their contractors. Together, they ensure that sensitive government data is protected from a variety of threats.

Proving you’re FIPS compliant: Testing and validation

Each FIPS has its own compliance and implementation expectations based on its purpose and scope. The two main approaches to FIPS validation are certification and periodic assessments, and they serve distinct purposes in proving and maintaining compliance.

Certification: One-time validation

Certification is a formal, one-time process where a system, module, or component is tested against a specific FIPS standard. This type of validation ensures that the technology or implementation meets the strict requirements set by the standard.

Certification typically involves external, independent testing by the accredited labs mentioned below. For example:

• FIPS 140 (Cryptographic Modules): Certification is conducted through the Cryptographic Module Validation Program (CMVP) with testing at NVLAP-accredited labs.
• FIPS 201 (PIV Systems): Certification is handled by the GSA FIPS 201 Evaluation Program.

Certification evaluates compliance with the standard at a specific point in time. For example, FIPS 140 evaluates cryptographic modules for proper implementation of algorithms, key management, and self-testing. FIPS 197 validates encryption algorithms like AES.

Upon successful testing, the module, product, or system receives a certificate of validation or is listed on an approved product list (e.g., NIST's validated modules list for FIPS 140).

Periodic assessments: Ongoing compliance checks

Periodic assessments are regular evaluations conducted to ensure continued adherence to FIPS security standards over time.

These assessments are performed either by internal compliance teams or external auditors (e.g., as part of a FISMA audit or other regulatory reviews). Federal agencies often include assessments as part of their risk management processes.

This type of validation ensures that the implementation of FIPS standards remain consistent over time, especially after system updates or operational changes. For example:

• FIPS 199 and 200 compliance (categorization and minimum security requirements) are reassessed periodically as part of ongoing risk management.
• Cryptographic modules validated under FIPS 140 are reviewed to ensure proper implementation post-certification

Results are typically documented in security reports, system security plans (SSPs), or audit findings. No formal "certificate" is issued, but periodic assessments are critical for maintaining compliance with overarching frameworks like FISMA.

Why FIPS matter for federal contractors

If you’re a contractor working with federal agencies or federal contractors or suppliers, FIPS compliance might be required for your systems or technologies, especially if you handle sensitive data. Meeting FIPS standards not only ensures compliance but also demonstrates your organization’s commitment to security and reliability, which can be a competitive advantage in securing government contracts.