[Federal Register Volume 74, Number 138 (Tuesday, July 21, 2009)]
[Notices]
[Pages 35898-35899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17420]
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POSTAL REGULATORY COMMISSION
[Docket No. CP2009-48 and CP2009-49; Order No. 250]
New Competitive Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
request to add two additional Global Plus 2 contracts to the
Competitive Product List. This notice addresses procedural steps
associated with these filings.
DATES: Comments are due July 23, 2009.
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. Background
II. Notice of Filing
III. Ordering Paragraphs
I. Background
On July 13, 2009, the Postal Service filed a notice, pursuant to 39
U.S.C. 3633 and 39 CFR 3015.5, announcing that it has entered into two
additional Global Plus 2 contracts, which it states fit within the
previously established Global Plus 2 Contracts product.\1\ The Postal
Service states that the instant contracts are functionally equivalent
to previously submitted Global Plus 2 contracts, are filed in
accordance with Order No. 112 and are supported by Governors' Decision
No. 08-10 filed in Docket No. MC2008-7.\2\ Notice at 1.
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\1\ Notice of the United States Postal Service of Filing Two
Functionally Equivalent Global Plus 2 Negotiated Service Agreements,
July 13, 2009 (Notice).
\2\ See Docket Nos. MC2008-7, CP2008-16 and CP2008-17, Order
Concerning Global Plus 2 Negotiated Service Agreements, October 3,
2008 (Order No. 112).
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The Notice also states that in Docket No. MC2008-7, the Governors
established prices and classifications for competitive products not of
general applicability for Global Plus 2 contracts. The Postal Service
relates that the instant contracts are the immediate successor
contracts to those in Docket Nos. CP2008-16 and CP2008-17, which will
expire soon, and which the Commission found to be functionally
equivalent in Order No. 112. The Postal Service contends that the
instant contracts should be included within the Global Plus 2 product
on the Competitive Product List. Id. In support, the Postal Service has
filed redacted versions of each contract and related materials as
Attachments 1-A and 1-B. Redacted versions of the certified statements
required by 39 CFR 3015.5 are included as Attachments 2-A and 2-B,
respectively. The Postal Service states that the contracts should be
included within the Global Plus 2 product and requests that the instant
contracts be considered the ``baseline contracts for future functional
equivalency analyses concerning this product.'' Id. at 2.
The instant contracts. The Postal Service filed the instant
contracts pursuant to 39 CFR 3015.5. The contracts become effective
August 1, 2009, unless regulatory reviews affect that date, and have a
one-year term.
The Postal Service maintains that certain portions of each contract
and certified statements required by 39 CFR 3015.5(c)(2), names and
identifying information of the Global Plus 2 customers, related
financial information, portions of the certified statements which
contain costs and pricing as well as the accompanying analyses that
provide prices, terms, conditions, and financial projections should
remain under seal. Id. at 3.
The Postal Service asserts the contracts are functionally
equivalent because they share similar cost and market characteristics
and should be classified as a single product. Id. at 3. It states that
while the precursor contracts filed in Docket Nos. CP2008-16 and
CP2008-17 exhibited minor distinctions based on differences in
customers' negotiations, business needs or relationship with the Postal
Service, the new versions of the agreements are identical to one
another. Id. at 4.
The Postal Service also states that the instant contracts'
customers are the
[[Page 35899]]
same Postal Qualified Wholesalers (PQWs) as the parties to the
contracts in Docket Nos. CP2008-16 and CP2008-17. Even though some
terms and conditions of the contracts have changed, it states the
essence of the service to the PQW customers is offering price-based
incentives to commit large amounts of mail volume or postage revenue
for Global Bulk Economy (GBE) and Global Direct (GD).\3\
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\3\ The Postal Service states the commitments also account for
International Priority Airmail (IPA), International Surface Air Lift
(ISAL), Express Mail International (EMI), and Priority Mail
International (PMI) items mailed under a separate but related Global
Plus 1 contract with each customer. The Global Plus 1 contracts are
the subject of a separate competitive products proceeding.
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The Postal Service indicates that the instant contracts have
material differences which include removal of retroactivity provisions,
explanations of price modification as a result of currency rate
fluctuations or postal administration fees; removal of language on
enforcement of mailing requirements; and restructuring of price
incentives, commitments, penalties and clarification of continuing
contractual obligations in the event of termination.
The Postal Service maintains these differences only add detail or
amplify processes included in prior Global Plus 2 contracts. It
contends because the contracts have the same cost attributes and
methodology as well as similar cost and market characteristics, the
differences do not affect the fundamental service being offered or the
essential structure of the contracts. Id. at 8. It states the contracts
are substantially similar both to one another and to the precursor
Global Plus 2 contracts. Therefore, it asserts these contracts are
``functionally equivalent in all pertinent respects.'' Id. at 8.
II. Notice of Filing
The Commission establishes Docket Nos. CP2009-48 and CP2009-49 for
consideration of the matters related to the contracts identified in the
Postal Service's Notice.
Interested persons may submit comments on whether the instant
contracts are consistent with the policies of 39 U.S.C. 3632, 3622, or
3642. Comments are due no later than July 23, 2009. The public portions
of these filings can be accessed via the Commission's Web site (http://www.prc.gov).
The Commission appoints Michael J. Ravnitzky to serve as Public
Representative in these dockets.
III. Ordering Paragraphs
It is Ordered:
1. The Commission establishes Docket Nos. CP2009-48 and CP2009-49
for consideration of the issues raised in these dockets.
2. Comments by interested persons on issues in these proceedings
are due no later than July 23, 2009.
3. Pursuant to 39 U.S.C. 505, Michael J. Ravnitzky is appointed to
serve as officer of the Commission (Public Representative) to represent
the interests of the general public in these proceedings.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
Issued: July 16, 2009.
By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-17420 Filed 7-20-09; 8:45 am]
BILLING CODE 7710-FW-P