[Federal Register Volume 73, Number 195 (Tuesday, October 7, 2008)]
[Notices]
[Pages 58686-58687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23733]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2008-8 and CP2008-26; Order No. 111]
Priority Mail Contract
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
request to add Priority Mail Contract 1 to the Competitive Product
List. The Postal Service has also filed a related contract. The notice
addresses procedural steps associated with these filings.
DATES: Comments are due October 9, 2008.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and [email protected].
SUPPLEMENTARY INFORMATION:
I. Introduction
On September 23, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the
Priority Mail Contract 1 product to the Competitive Product List. The
Postal Service asserts that the Priority Mail Contract 1 product is a
competitive product ``not of general applicability'' within the meaning
of 39 U.S.C. 3632(b)(3). This Request has been assigned Docket No.
MC2008-8.\1\
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
September 23, 2008 (Request).
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The Postal Service contemporaneously filed a contract related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contract is assigned Docket No. CP2008-26. The Postal
Service represents that the contract fits within the proposed Mail
Classification Schedule (MCS) language and is set to expire 2 years
from the effective date unless renewed by mutual consent.
Request. The Request is filed pursuant to 39 U.S.C. 3642 and 39 CFR
3020.30 et seq. The Request incorporates (1) A redacted version of the
Governors' Decision authorizing the new product; (2) a redacted version
of the contract; (3) requested changes in the MCS product list; (4)
submission of supporting material under seal; and (5) certification of
compliance with 39 U.S.C. 3633(a).\2\ Substantively, it requests that
the Priority Mail Contract 1 product be added to the competitive
product list. Request at 1-2. The Postal Service states the service to
be provided under the contract will cover its attributable costs and
make a positive contribution to coverage of institutional costs.\3\ The
Postal Service also asserts that the contract will increase
contribution toward the requisite 5.5 percent of the Postal Service's
total institutional costs. As a result, the Request contends there will
be no issue of subsidization of competitive products by market dominant
products. Id. at 1.
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\2\ Attachment A to the Request consists of the redacted
Decision of the Governors of the United States Postal Service on
Establishment of Rates and Class Not of General Applicability for
Priority Mail Service (Governors' Decision No. 08-11). The
Governors' Decision includes an attachment which is an analysis of
the proposed Priority Mail Service Contract. Attachment B is the
redacted version of the contract. Attachment C shows the requested
changes in the MCS product list. Attachment D provides a statement
of supporting justification for this Request. Attachment E provides
the certification of compliance with 39 U.S.C. 3633(a).
\3\ See Attachment D which provides information on the impact of
the product cost and states that Priority Mail is provided in a
highly competitive market which affects the pricing of these
products.
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The Postal Service's filing includes a redacted version of the
contract related to the proposed new product pursuant to 39 U.S.C.
3632(b)(3) and 39 CFR 3015.5. By its terms, the contract will expire 2
years from the effective date, which is proposed to be 1 day after the
Commission approves the required addition of this product to the
product list. The Postal Service maintains that the contract pricing
and customer-
[[Page 58687]]
specific information, as well as portions of the Governors' Decision,
should remain confidential.
In its Request, the Postal Service provides an analysis of the
contract which, among other things, concludes that it is consistent
with 39 U.S.C. 3633(a) and 39 CFR 3015.7(c). The analysis notes that
the contract is not risk free, but concludes that the risks are
manageable. See Attachment to Governors' Decision.
II. Notice of Filings
The Commission establishes Docket Nos. MC2008-8 and CP2008-26 for
consideration of the Request pertaining to the Priority Mail Contract 1
product and the related contract. In keeping with practice, these
dockets are addressed on a consolidated basis for purposes of this
order; however, future filings should be made in the specific docket in
which issues being addressed pertain.
Interested persons may submit comments on whether the Postal
Service's filings in the captioned dockets are consistent with the
policies of 39 U.S.C. 3632, 3633, or 3642. Comments are due no later
than October 9, 2008. The public portions of these filings can be
accessed via the Commission's Web site (http://www.prc.gov).
The Commission appoints Michael Ravnitzky to serve as Public
Representative in the captioned filings.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. MC2008-8 and CP2008-26
for consideration of the matters raised in each docket.
2. The Commission, pursuant to 39 U.S.C. 505, appoints Michael
Ravnitzky to serve as officer of the Commission (Public Representative)
to represent the interests of the general public in these proceedings.
3. Comments by interested persons in these proceedings are due no
later than October 9, 2008.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-23733 Filed 10-6-08; 8:45 am]
BILLING CODE 7710-FW-P