[Federal Register Volume 74, Number 140 (Thursday, July 23, 2009)]
[Notices]
[Pages 36538-36539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17605]
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POSTAL REGULATORY COMMISSION
[Docket No. CP2009-50; Order No. 251]
Global Expedited Package Services Contract
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
request to include an additional Priority Mail Contract 1 on the
Competitive Product List. This notice addresses procedural steps
associated with this filing.
DATES: Comments are due July 27, 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. Introduction
II. Notice of Filing
III. Ordering Paragraphs
I. Introduction
On July 16, 2009, the Postal Service filed a notice announcing that
it has entered into an additional Global Expedited Package Services 1
(GEPS 1) contract.\1\ GEPS 1 provides volume-based incentives for
mailers that send large volumes of Express Mail International (EMI)
and/or Priority Mail International (PMI). The Postal Service believes
the instant contract is functionally equivalent to previously submitted
GEPS 1 contracts, and is supported by the Governors' Decision filed in
Docket No. CP2008-4.\2\ Notice at 1. It further notes that in Order No.
86, which established GEPS 1 as a product, the Commission held that
additional contracts may be included as part of the GEPS 1 product if
they meet the requirements of 39 U.S.C. 3633, and if they are
functionally equivalent to the initial GEPS 1 contract filed in Docket
No. CP2008-5.\3\ Notice at 1.
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\1\ Notice of United States Postal Service Filing of
Functionally Equivalent Global Expedited Package Services 1
Negotiated Service Agreement, July 16, 2009 (Notice).
\2\ See Docket No. CP2008-4, Notice of United States Postal
Service of Governors' Decision Establishing Prices and
Classifications for Global Expedited Package Services Contents, May
20, 2008. The docket referenced in the caption should be the docket
in which the Governors' Decision is filed. In this instance, that
was Docket No. CP2008-4. The contract being suspended was filed in
Docket No. CP2008-5.
\3\ See Docket No. CP2008-5, Order Concerning Global Expedited
Package Services Contracts, June 27, 2008, at 7 (Order No. 86).
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The instant contract. The Postal Service filed the instant contract
pursuant to 39 CFR 3015.5. In addition, the Postal Service contends
that the contract is in accordance with Order No. 86. The Postal
Service states that the instant contract replaces the contract for the
customer in Docket No. CP2008-5 which will end on August 1, 2009. Id.
at 2. It submitted the contract and supporting material under seal, and
attached a redacted copy of the contract and certified statement
required by 39 CFR 3015.5(c)(2) to the Notice as Attachments 1 and 2,
respectively. Id. at 1-2. The term of the instant contract is 1 year
from the date the Postal Service notifies the customer that all
necessary regulatory approvals have been received.
The Notice advances reasons why the instant GEPS 1 contract fits
within the Mail Classification Schedule language for GEPS 1. The Postal
Service contends that the instant contract is functionally equivalent
to the GEPS 1 contracts filed previously. It states that in Governors'
Decision No. 08-7, a pricing formula and classification system were
established to ensure that each contract meets the statutory and
regulatory requirements of 39 U.S.C. 3633. The Postal Service contends
that the instant contract demonstrates its functional equivalence with
the previous GEPS 1 contracts because of several factors: The customers
are small or medium-sized businesses that mail directly to foreign
destinations using EMI and/or PMI, the contract term of one year
applies to all GEPS 1 contracts, the contracts have similar cost and
market characteristics, and each requires payment through permit
imprint. Id. at 4. It asserts that even though prices may be different
[[Page 36539]]
based on volume or postage commitments made by the customers, or
updated costing information, these differences do not affect the
contracts' functional equivalency because the GEPS 1 contracts share
similar cost attributes and methodology. Id. at 4-5.
The Postal Service also states the instant contract has minor
differences in terms compared to other GEPS 1 contracts based on the
individual mailers. These distinctions include provisions clarifying
the correlation between regulatory oversight and contract expiration
\4\ and the availability of other Postal Service products and services;
exclusion of certain flat rate products from the mail qualifying for
discounts; a simpler mailing notice requirement along with provisions
to meet scheduling needs; mail tender location changes; specific
liquidated damages terms; provisions clarifying the mailer's volume and
revenue commitment calculation in the event of early termination; and
provisions clarifying aspects subject to regulatory oversight or
revisions to update terms or references from a prior contract. Id. at
5-6.
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\4\ The Postal Service states that some of the contracts
generally provide that if all applicable reviews have not been
completed at the time an older contract expires, the mailer must pay
published prices until some alternative becomes available. It seeks
approval for the instant agreement prior to expiration of the
current agreement.
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The Postal Service states that these differences related to a
particular mailer are ``incidental differences'' and do not change the
conclusion that these agreements are functionally equivalent in all
substantive aspects. Id. at 7.
The Postal Service requests that this contract be included within
the GEPS 1 product and be considered the baseline contract for
determining functional equivalence for additional GEPS 1 contracts. Id.
II. Notice of Filing
The Commission establishes Docket No. CP2009-50 for consideration
of matters related to the contract identified in the Postal Service's
Notice.
Interested persons may submit comments on whether the Postal
Service's contract is consistent with the policies of 39 U.S.C. 3632,
3622 or 3642. Comments are due no later than July 27, 2009. The public
portions of these filings can be accessed via the Commission's Web site
(http://www.prc.gov).
The Commission appoints Paul L. Harrington to serve as Public
Representative in the captioned filings.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. CP2009-50 for
consideration of the issues raised in this docket.
2. Comments by interested persons in these proceedings are due no
later than July 27, 2009.
3. Pursuant to 39 U.S.C. 505, Paul L. Harrington 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.
By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-17605 Filed 7-22-09; 8:45 am]
BILLING CODE 7710-FW-P