Federal Register, Volume 74 Issue 55 (Tuesday, March 24, 2009)

[Federal Register Volume 74, Number 55 (Tuesday, March 24, 2009)]
[Notices]
[Pages 12406-12407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6419]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-21 and CP2009-26; Order No. 193]


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 Priority Mail Contract Mail 5 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 March 25, 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 March 13, 2009, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority 
Mail Contract 5 to the Competitive Product List.\1\ The Postal Service 
asserts that Priority Mail Contract 5 is a competitive product ``not of 
general applicability'' within the meaning of 39 U.S.C. 3632(b)(3). Id. 
at 1. The Request has been assigned Docket No. MC2009-21.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 5 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, March 
13, 2009 (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 has been assigned Docket No. CP2009-26.
    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 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 seeks to add Priority 
Mail Contract 5 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 
Priority Mail Service (Governors' Decision No. 09-4). The Governors' 
Decision includes an attachment which provides an analysis of the 
proposed Priority Mail Contract 5. Attachment B is the redacted 
version of the contract. Attachment C shows the requested changes to 
the Mail Classification Schedule 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, Mary Prince Anderson, 
Acting 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. Anderson 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 Priority Mail 
Contract 5 is included with the Request. The contract is for 1 year and 
is to be effective 1 day after 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 A and Attachment E. It notes that actual performance under 
this contract could vary from estimates, but concludes that the risks 
are manageable. Id. at Attachment A.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Priority Mail 
Contract 5, under seal. 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.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-21 and CP2009-26 for 
consideration of the Request pertaining to the proposed Priority Mail 
Contract 5 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.
    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 3020 subpart B. Comments are due no later than March 25, 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.
    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-21 and CP2009-26 
for

[[Page 12407]]

consideration of the matter raised in each 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.
    3. Comments by interested persons in these proceedings are due no 
later than March 25, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-6419 Filed 3-23-09; 8:45 am]
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