Another Star Empire that competes with the Cyberbot Commonwealth, they are comprised entirely or organic races.
While the Federation presents itself as a benevolent government, it is nonetheless keen on Cold War tactics of spying on its neighbors, allies and even it's own citizens and member states. It also holds a dislike towards mechanical beings, mainly due to their natural strength compered to most organics and bigotry towards the concept of sentient machines.
Another reason for their concern is that the Cyberbot Commonwealth is much more powerful in terms of technology and military power. The war with the Destroids did not help this, nor their later pirating in their region of space. They also continue to demand physical proof of Shiny's destruction and hold a keen interest in the Ban Ray.
The Federation is known for creating sentient mechanoids simply to sent into Commonwealth space as sleeper agents.
While the federation uses blasters and shields like the Commonwealth, their power and FTL travel is below. While they have Fusion devices, they could not hope to power planet destroying weapons, and they use Mass Drives and Mass Gates, with their most advance ships using Warp Travel.
While they can create sentient machines, they generally focus on Synthetics, as opposed to the servo and circuit based construction that the Cyberbots use. They are also baffled by the Spark, although that may have to do with dogma.