[Federal Register Volume 74, Number 139 (Wednesday, July 22, 2009)]
[Notices]
[Pages 36276-36277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17496]
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POSTAL REGULATORY COMMISSION
[Docket Nos. CP2009-46 and CP2009-47; Order No. 249]
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 1 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 1 contracts, which it states fits within the
previously established Global Plus Contracts product.\1\ The Postal
Service states that the instant contracts are functionally equivalent
to previously submitted Global Plus 1 contracts, are filed in
accordance with Order No. 85, and are supported by Governors' Decision
No. 08-8 filed in Docket No. CP2008-8.\2\ Notice at 1.
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\1\ Notice of the United States Postal Service of Filing Two
Functionally Equivalent Global Plus 1 Contracts Negotiated Service
Agreements, July 13, 2009 (Notice).
\2\ See Docket No. CP2008-8 through CP2008-10, PRC Order No. 85,
Order Concerning Global Plus Negotiated Service Agreements, June 27,
2008.
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The Notice also states that in Docket No. CP2008-8, the Governors
have established prices and classifications for competitive products
not of general applicability for Global Plus Contracts.\3\ The Postal
Service states that the instant contracts are the immediate successor
contracts to those in Docket Nos. CP2008-9 and CP2008-10, both of which
are to expire soon, which the Commission found to be functionally
equivalent in Order No. 85.
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\3\ See Docket No.CP2008-8, Notice of United States Postal
Service of Governors' Decision Establishing Prices and
Classifications for Global Plus Contracts, June 2, 2008, at 1.
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The Postal Service contends that the instant contracts should be
included within the Global Plus 1 product on the Competitive Product
List. Id.
In support, the Postal Service has also 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 1 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 statement required by 39 CFR 3015.5(c)(2), containing
names and identifying information of the Global Plus 1 customers,
related financial information, 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. CP2008-9 and CP2008-
10 exhibited minor distinctions based on differences in customers'
negotiations, business needs or relationship with the Postal Service,
the new versions of the agreements differ primarily in the method used
for structuring the discounts offered. Id. at 4. The Postal Service
also states that the instant contracts' customers are the same Postal
Qualified Wholesalers (PQWs) as the parties to the contracts in Docket
Nos. CP2008-9 and CP2008-10. 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 International Priority Airmail
(IPA), International Surface Air Lift (ISAL), Express Mail
International (EMI), and Priority Mail International (PMI).\4\
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\4\ The Postal Service states the commitments also account for
Global Bulk Economy and Global Direct items mailed under a separate
but related Global Plus 2 contract with each customer. The Global
Plus 2 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 removing retroactivity provisions;
clarifying aspects subject to regulatory oversight; expanding entry
locations; restructuring price incentives, commitments, and penalties;
and clarifying the parties' obligations in the event of termination.
Id. at 4-7.
The Postal Service maintains these differences only add detail or
amplify processes included in prior Global Plus 1 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 7-8. It states the
contracts are substantially similar both to one another and to the
precursor Global Plus 1 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. CP2009-46 and CP2009-47 for
consideration of the matters related to the contract 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. CP2009-46 and CP2009-47
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
[[Page 36277]]
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. E9-17496 Filed 7-21-09; 8:45 am]
BILLING CODE 7710-FW-P