[Federal Register Volume 75, Number 146 (Friday, July 30, 2010)]
[Notices]
[Pages 44993-44994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18701]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-27, CP2010-69; and CP2010-70, Order No. 493]


New 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 Global Plus 2A 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 27, 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 2A, to 
the competitive product list and to that end, filed notice, pursuant to 
39 CFR 3015.5, announcing that it has entered into two additional 
Global Plus 2A contracts.\1\ The Postal Service states that the instant 
contracts are functionally equivalent to one another and to previously 
submitted Global Plus 2 contracts, and are filed in accordance with 
Order No. 112.\2\ It states further that the instant contracts are 
supported by Governors' Decision No. 08-10, which establishes prices 
and classifications not of general applicability for Global Direct, 
Global Bulk Economy and Global Plus Contracts.\3\
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    \1\ Notice of the United States Postal Service of Filing of Two 
Functionally Equivalent Global Plus 2A Contracts Negotiated Service 
Agreements, July 13, 2010 (Notice); see Errata to Notice of the 
United States Postal Service of Filing of Two Functionally 
Equivalent Global Plus 2A Contracts Negotiated Service Agreements, 
July 14, 2010; see also Notice of the United States Postal Service 
of Filing a Signed Global Plus 2A Negotiated Service Agreement, July 
15, 2010.
    \2\ See Docket Nos. MC2008-7, CP2008-16 and CP2008-17, Order 
Concerning Global Plus 2 Negotiated Service Agreements, October 3, 
2008 (Order No. 112).
    \3\ See Docket No. MC2008-7, CP2008-16, and CP2008-17, Request 
of the United States Postal Service to Add Global Plus 2 Negotiated 
Service Agreements to the Competitive Product List, and Notice of 
Filing (Under Seal) the Enabling Governors' Decision and Two 
Functionally Equivalent Agreements, Attachment 1, August 8, 2010.
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    While the Postal Service's filing was not submitted pursuant to 39 
U.S.C. 3020.30 et seq., it appears to request the addition of a new 
product to the competitive product list. Docket No. MC2010-27 is 
established to consider this 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 contracts have been 
assigned Docket Nos. CP2010-69 and CP2010-70, 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 successor contracts to those in 
Docket Nos. CP2009-48 and CP2009-49 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.
    The Postal Service filed copies of the contracts, Governors' 
Decision with attachments, and supporting financial documentation under 
seal. Id. at 2.
    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;
    3. Attachment 3A and 3B-a certified statement for each contract 
required by 39 CFR 3015.5(c)(2);
    4. Attachment 4-a redacted copy of Governors' Decision No. 08-10, 
which establishes prices and classifications for Global Direct, Global 
Bulk Economy, and 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 2 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 in the instant contracts 
and their predecessors, e.g., that the customers are the same and that 
fundamental terms and conditions of the contracts remain essentially 
unchanged. In addition the Postal Service identifies what it 
characterizes as material changes in the contracts, e.g., term, price 
incentives, and additional service options. It asserts that the 
differences do not affect either the

[[Page 44994]]

service provided or the structure of the contracts. Id. at 5-7.
    Baseline treatment. The Postal Service also states that each of the 
instant contracts takes the place of its immediate predecessor which 
served as the baseline contracts for the Global Plus 2 Contracts 
product.\4\ It requests that the instant contracts be considered ``the 
new `baseline' contracts for consideration of future such agreements' 
functional equivalency.'' Id. at 9.
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    \4\ See Docket No. CP2009-48, Order Concerning Filing a 
Functionally Equivalent Global Plus Contract Negotiated Service 
Agreement, July 31, 2009, at 7; and Docket No. 2009-49, Order 
Concerning Filing a Functionally Equivalent Global Plus Contract 
Negotiated Service Agreement, July 31, 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 U.S.C. 
3642(b) is unnecessary here, because of the Commission's findings in 
Order No. 43 that Negotiated Service Agreements for outbound 
International Mail are classified as competitive. 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 2 
Contracts and are functionally equivalent to each other. Id. at 9. It 
urges the Commission to add Global Plus 2A Contracts to the competitive 
product list. Id.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-27. CP2010-69, and 
CP2010-70 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 27, 2010. The 
public portions of these filings can be accessed via the Commission's 
Website (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. MC2010-27, CP2010-69, and 
CP2010-70 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 27, 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. 2010-18701 Filed 7-29-10; 8:45 am]
BILLING CODE 7710-FW-S