These are the Good Guys. They have strong environmental laws which reduce their mining rate to 70%. Their efficient government gives them 200% tax income. The well-educated personell on their ships gives them various bonuses in combat: their ships behave as if they were 50 kt more massive, their carriers behave as if they had 3 more fighter bays, and their weapons are fully functional till the end.
The Federation can upgrade ships using Super Refit.
The Federal fleet general consists of a number of no-frills ships. They can build terraformers and a bioscanner, though.