[Federal Register Volume 75, Number 142 (Monday, July 26, 2010)]
[Notices]
[Pages 43581-43582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18163]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2010-26, CP2010-67 and CP2010-68; Order No. 491]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
filing to add Global Plus 1A Contracts (CP2008-9 and CP2008-10) to the
competitive product list. The Postal Service has also filed related
contracts. This notice addresses procedural steps associated with the
filing.
DATES: Comments are due: July 26, 2010.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov. Commenters who cannot submit their
views electronically should contact the person identified in the FOR
FURTHER INFORMATION CONTACT section by telephone for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
[email protected] or 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Notice of Filing
III. Ordering Paragraphs
I. Introduction
The Postal Service seeks to add a new product, Global Plus 1A, to
the competitive product list and, to that end, filed notice, pursuant
to 39 CFR 3015.5, announcing that it has entered into two Global Plus
1A contracts.\1\ The Postal Service states that the instant contracts
are functionally equivalent with one another and to previously
submitted Global Plus 1 contracts.\2\ It states further that the
instant contracts are supported by Governors' Decision No. 08-8, which
establishes prices and classifications not of general applicability for
Global Plus Contracts.\3\
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\1\ Notice of the United States Postal Service of Filing Two
Functionally Equivalent Global Plus 1A Contracts Negotiated Service
Agreements, July 13, 2010 (Notice); see also Errata to Notice of the
United States Postal Service of Filing Two Functionally Equivalent
Global Plus 1A Contracts Negotiated Service Agreements, July 14,
2010; Notice of the United States Postal Service of Filing a Signed
Global Plus 1A Negotiated Service Agreement, July 15, 2010.
\2\ See Docket Nos. CP2008-8 through CP2008-10, Order Concerning
Global Plus Negotiated Service Agreements, June 27, 2008 (Order No.
85).
\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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While the Postal Service's filing was not submitted pursuant to 39
CFR 3020.30 et seq., it appears to request the addition of a new
product to the competitive product list. Docket No. MC2010-28 is
established to consider this as part of the filing.
The Postal Service contemporaneously filed copies of the contracts
related to the proposed competitive product classification pursuant to
39 U.S.C. 3632(b)(3) and 39 CFR 3015.5. The two contracts have been
assigned Docket Nos. CP2010-67 and CP2010-68, respectively.
The instant contracts. The Postal Service filed the instant
contracts pursuant to 39 CFR 3015. The Postal Service states that the
instant contracts are the immediate successors to those in Docket Nos.
CP2009-46 and CP2009-47 that are scheduled to expire July 31, 2010.
Notice at 2-3. The instant contracts are expected to begin August 1,
2010, and expire on the day prior to the day of any changes in the
published rates that affect the Qualifying Mail subject to the
contracts. Id. at 3-4.\4\
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\4\ The Postal Service has filed copies of contracts that have
not been signed by Postal Service representatives or the mailer. The
Commission directs the Postal Service to file executed copies of
these contracts as soon as possible.
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The Postal Service filed copies of the contracts, Governors'
Decision with attachments, and supporting financial documentation under
seal. Id. at 3.
Additionally, in support of its Notice, the Postal Service filed
the following five attachments:
1. Attachment 1--a statement of supporting justification required
by 39 CFR 3020.32;
2. Attachments 2A and 2B--a redacted copy of each contract and
applicable annexes;
3. Attachments 3A and 3B--a certified statement required by 39 CFR
3015.5(c)(2);
4. Attachment 4--a redacted copy of Governors' Decision No. 08-8,
which establishes prices and classifications for Global Plus Contracts,
formulas for the prices, analysis and certification of the formulas and
certification of the Governors' vote; and
5. Attachment 5--an application for non-public treatment of
materials to maintain the contract and supporting documents under seal.
Functional equivalence. The Postal Service asserts that the instant
contracts are functionally equivalent both to one another and to the
precursor Global Plus 1 contracts in that they share similar cost and
market characteristics. Id. at 4. It contends as a result the instant
contracts should be grouped together as a single product. Id.
The Postal Service addresses similarities between the instant
contracts and their predecessors, e.g., that the customers are the same
and the fundamental terms and conditions of the contracts remain
essentially unchanged. Id. at 5. In addition, the Postal Service
identifies what it characterizes as material changes in the contracts,
e.g., term, price incentives, and minimum weight. The Postal Service
asserts that the differences do not affect either the service provided
or the structure of the contracts. Id. at 5-7.
Baseline treatment. The Postal Service states that each of the
instant contracts takes the place of its immediate predecessor which
served as the baseline contracts for the Global Plus 1 Contracts
product.\5\ It requests that the instant contracts be considered ``the
new 'baseline' agreements for consideration of future such agreements
functional equivalency.'' Id. at 9.
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\5\ See Docket No. CP2009-46, Order Concerning Filing a
Functionally Equivalent Global Plus 1 Contract Negotiated Service
Agreement, July 31, 2009 at 7; see also Docket No. CP2009-47, Order
Concerning Filing a Functionally Equivalent Global Plus 1 Contract
Negotiated Service Agreement, August 3, 2009, at 7.
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Filing under part 3020. In support of its filing, the Postal
Service submitted, as Attachment 1, a Statement of Supporting
Justification. The Postal Service asserts that analysis under 39
[[Page 43582]]
U.S.C. 3642(b) is unnecessary here because of the Commission findings
in Order No. 43 that Negotiated Service Agreements for outbound
International Mail are classified as competitive. Further, it asserts
that the instant MC docket (MC2010-26) is merely a technicality ``and
does not involve a substantively new product requiring fresh review.''
Id. at 8.
The Postal Service contends that its filings demonstrate that the
instant contracts comply with the requirements of 39 U.S.C. 3633, fit
within the Mail Classification Schedule language for Global Plus 1
Contracts and are functionally equivalent to each other. Id. at 9. It
urges the Commission to add Global Plus 1A Contracts to the competitive
product list. Id.
II. Notice of Filing
The Commission establishes Docket Nos. MC2010-26, CP2010-67 and
CP2010-68 for consideration of matters raised in the Postal Service's
Notice.
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, 39 CFR part 3015, and 39 CFR
3020 subpart B. Comments are due no later than July 26, 2010. 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. MC2010-26, CP2010-67 and
CP2010-68 for consideration of matters raised by the Postal Service's
Request.
2. Comments by interested persons in these proceedings are due no
later than July 26, 2010.
3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to
serve as the 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.
Shoshana M. Grove
Secretary.
[FR Doc. 2010-18163 Filed 7-23-10; 8:45 am]
BILLING CODE 7710-FW-S