Federal Information Processing Standards (FIPS) are a set of guidelines developed by the National Institute of Standards and Technology (NIST) to ensure the security and interoperability of federal information systems. These standards cover various aspects of information technology, including data encryption, software security, and system performance. FIPS are mandatory for all federal agencies and are often adopted by state and local governments, as well as private sector organizations that work with the federal government. Compliance with FIPS helps protect sensitive information and promotes consistent practices across different agencies and organizations.