"FOSS" (and "FLOSS", which the FSF prefers) is used as an encompassing term for the two main political camps of "free/libre software" and "open source software".
It's meant to express a neutral position about the underlying politics.
To be clear, there are a small number of licenses which the Open Source Initiative say are open source where the FSF says are not free software (eg, the NASA Open Source Agreement v1.3.)