The winner will be selected by 2000, but is not likely to be formally announced until 2001 after a public comment period, according to Smid.

CNN: U.S. government to set new standard for advanced encryption

In the meantime, NIST is recommending companies use Triple DES -- which involves three different DES operations to encrypt and decode -- if they feel DES is not secure enough, Smid said.

CNN: U.S. government to set new standard for advanced encryption

Smid noted that NIST's public contest to find the next generation encryption standard is a radical change from the government's previously closed procedure for adopting DES. "It's a breakthrough in the way the government and the public sector are coming up with a standard, " he said.

CNN: U.S. government to set new standard for advanced encryption