Federal Register, Volume 74 Issue 7 (Monday, January 12, 2009)

[Federal Register Volume 74, Number 7 (Monday, January 12, 2009)]
[Notices]
[Pages 1262-1263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-289]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-15 and CP2009-21; Order No. 165]


Domestic Mail Contracts

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Express Mail Contract 3 to the Competitive Product List. 
The Postal Service has also filed a related contract. This notice 
addresses procedural steps associated with these filings.

DATES: Comments are due January 15, 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

    On December 31, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Express 
Mail Contract 3 to the Competitive Product List.\1\ The Postal Service 
asserts that the Express Mail Contract 3 product is a competitive 
product ``not of general applicability'' within the meaning of 39 
U.S.C. 3632(b)(3). Request at 1. The Request has been assigned Docket 
No. MC2009-15.
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    \1\ Request of the United States Postal Service to Add Express 
Mail Contract 3 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
December 31, 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. CP2009-21.
    Request. 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 Mail Classification 
Schedule (MCS) product list; (4) a statement of supporting 
justification as required by 39 CFR 3020.32; and (5) certification of 
compliance with 39 U.S.C. 3633(a).\2\ Substantively, the Request asks 
the Commission to add the Express Mail Contract 3 product to the 
Competitive Product List. Id. at 1-2.
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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 Rate and Class Not of General Applicability for 
Express Mail Service (Governors' Decision No. 08-25). The Governors' 
Decision includes an attachment which provides an analysis of the 
proposed Express Mail Contract 3. Attachment B is the redacted 
version of the contract. Attachment C shows the requested changes to 
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).
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    In the statement of supporting justification, Kim Parks, Manager, 
Sales and Communications, Expedited Shipping, asserts that the service 
to be provided under the contract will cover its attributable costs, 
make a positive contribution to institutional costs, and increase 
contribution toward the requisite 5.5 percent of the Postal Service's 
total institutional costs. Id., Attachment D. Thus, Ms. Parks contends 
there will be no issue of subsidization of competitive products by 
market dominant products as a result of this contract. Id.
    Related contract. A redacted version of the specific Express Mail 
Contract 3 is included with the Request. The contract is for 1 year and 
is to be effective the day the Commission provides all necessary 
regulatory approvals. The Postal Service represents that the contract 
is consistent with 39 U.S.C. 3633(a) and 39 CFR 3015.7(c). See id., 
Attachment to Governors' Decision and Attachment E. It notes that 
performance under this contract could vary from estimates, but 
concludes that the risks are manageable, and overall the contract is 
expected to generate significant contribution. Id., Attachment to 
Governors' Decision.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Express Mail 
Contract 3, under seal.\3\ In its Request, the Postal Service maintains 
that the contract and related financial information, including the 
customer's name and the accompanying analyses that provide prices, 
terms, conditions, and financial projections should remain under seal. 
Id. at 2-3. It further believes that it would be inappropriate in this 
case to redact information through the ``blackout'' method since it 
could provide information or clues about the name of the customer, the 
length and breadth of price charts, the complexity of annual adjustment 
mechanisms, or other similar sensitive information. Accordingly, it 
redacts the sensitive information using ellipses. Id. at 3.
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    \3\ It notes that data filed under seal are more recent than 
what was available when the Governors voted. Id. at 2, n.10.
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II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-15 and CP2009-21 for 
consideration of the Request pertaining to the proposed Express Mail 
Contract 3 product and the related contract, respectively. 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.\4\
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    \4\ Docket No. MC2009-15 is reserved for only those filings 
related to the proposed product and the requirements of 39 U.S.C. 
3642, while Docket No. CP2009-21 is reserved for those filings 
specific to the contract and the requirements of 39 U.S.C. 3633.
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    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 and 39 CFR part 3015 and 39 
CFR part 3020, subpart B. Comments are due no later than January 15, 
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 these dockets.

III. Ordering Paragraphs

    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-15 and CP2009-21 
for consideration of the matters raised in each respective docket.
    2. 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.

[[Page 1263]]

    3. Comments by interested persons in these proceedings are due no 
later than January 15, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-289 Filed 1-9-09; 8:45 am]
BILLING CODE 7710-FW-P