[Federal Register Volume 74, Number 70 (Tuesday, April 14, 2009)]
[Notices]
[Pages 17235-17236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-8401]
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POSTAL REGULATORY COMMISSION
[Docket No. MT2009-1; Order No. 199]
Market Test
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
notice announcing its intent to initiate a market test. This notice
addresses procedural steps associated with this filing.
DATES: Postal Service responses to questions identified in this notice
are due April 20, 2009. Comments are due April 27, 2009.
ADDRESSES: Submit filings 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].
[[Page 17236]]
SUPPLEMENTARY INFORMATION:
I. Introduction
On April 1, 2009, the Postal Service filed a formal notice,
pursuant to 39 U.S.C. 3641(c)(1), announcing its intent to initiate a
market test beginning May 6, 2009, of an experimental product,
Collaborative Logistics.\1\ The Postal Service asserts that the
Collaborative Logistics product is a competitive product. Notice at 1.
The Notice recites the statutory authority for offering Collaborative
Logistics as an experimental product and provides a general description
of it. This experiment represents the initial market test conducted by
the Postal Service under the Postal Accountability and Enhancement Act
(PAEA).
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\1\ Notice of the United States Postal Service of Market Test of
Experimental Product--Collaborative Logistics, April 1, 2009
(Notice).
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Statutory authority. The Postal Service indicates that it plans to
conduct a market test of the proposed Collaborative Logistics product.
Section 3641 imposes certain conditions on experimental products which
the Notice purports to address. Specifically, the Postal Service
asserts that Collaborative Logistics is significantly different from
all products within the meaning of 39 U.S.C. 3641(b)(1).
In addition, it contends that ``the introduction or continued
offering of the product will not create an unfair or otherwise
inappropriate competitive advantage for the Postal Service or any
mailer, particularly in regard to small business concerns.'' Id. at 2;
see also 39 U.S.C. 3641(b)(2). Also, it submits that Collaborative
Logistics is correctly classified as a competitive product. Id.; see
also 39 U.S.C. 3641(b)(3).
Product description. Pursuant to 39 U.S.C.3641(c)(1)(B), the Postal
Service provides a brief description of the nature and scope of the
market test. The Postal Service explains that, in view of its large and
complex transportation network, ``the natural imbalance of mail volume
between cities and the need to meet operating plans to support service
standards makes some underutilized space on some highway transportation
predictable.'' Id. at 2-3. Under this market test, ``the Postal Service
would sell that available space.'' Id. at 3. Thus, it defines the
experimental product as ``transportation of an article or multiple
articles on a pallet or other unit load, on a space-available basis, in
postal transportation.'' Id. at 3.
Under the market test, ``unit loads will be picked up and delivered
to firms, stores, hospitals, warehouses, other large customer and/or
postal facilities.'' Id. For instance, the Postal Service specifies
that the ``maximum pallet weight will be 2200 pounds, with articles
secured to the pallet using shrink-wrapping and banding.'' Id. at 3.
These unit loads are to be shipped or carried like those loads provided
under similar offerings, often called LTL (less-than-truckload)
shipping services. The Postal Service notes that terms are to be
governed under negotiated contracts. Id. at 3-4.
The Postal Service indicates that total revenues from the market
test are not anticipated to exceed $10 million. Id. at 2. In addition,
it confirms that the market test shall not exceed two years. Id.
II. Notice of Filing
The Commission establishes Docket No. MT2009-1 for consideration of
matters raised by the Notice. Interested persons may submit comments on
whether the Postal Service's filing in the captioned docket is
consistent with the policies of 39 U.S.C. 3641. Comments are due no
later than April 27, 2009. The filing 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 this docket.
III. Supplemental Information
This is the first time the Postal Service has noticed an
experimental product under the PAEA. The Commission requests the Postal
Service to provide the following supplemental information regarding the
market test by April 20, 2009:
1. Please provide the Governors' decision, if any, authorizing
initiation of the experimental product.
2. Please describe: (a) The geographic market where the market test
will be conducted; (b) the plan for monitoring the performance of the
market test, including specific data items to be collected
periodically; (c) the parameters of the market test; and (d) the
criteria to be used to assess the success of the test.
3. Please describe how the product, Collaborative Logistics, will
be made available to the public.
4. The Notice describes the product, but does not explicitly
indicate whether the product is to be classified as a postal service.
Please elaborate.
5. Please identify: (a) When the ``similar product,'' referred to
at footnote 1 of the Notice, was terminated; and (b) explain how the
Collaborative Logistics experimental product is significantly different
from the similar product offered previously.
6. (a) Please provide the basis upon which the Postal Service
concludes that offering the product will not create an unfair or
otherwise inappropriate competitive advantage for the Postal Service or
any mailer.
(b) Please discuss the Postal Service's efforts to determine the
impact on small businesses.
7. Please identify all applicable federal and state laws and
regulations that apply to the transportation offerings of the
experimental product.
8. Please explain if Collaborative Logistics will use Purchased
Transportation (Cost Segment 14) or Vehicle Service Drivers (Cost
Segment 8).
IV. Ordering Paragraphs
It is Ordered:
1. The Commission establishes Docket No. MT2009-1 for consideration
of the matters raised by the Notice.
2. 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 this proceeding.
3. Answers to the questions set forth in the body of this Order are
due April 20, 2009.
4. Comments by interested persons are due no later than April 27,
2009.
5. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-8401 Filed 4-13-09; 8:45 am]
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