[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Notices]
[Pages 7634-7636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3293]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2010-18, CP2010-21 and CP2010-22; Order No. 407]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: This notice informs the public that the Postal Service has
filed a request to add International Business Reply Service Competitive
Contract 2 to the Competitive Product List, along with two related
contracts. It also addresses procedural steps associated with these
[[Page 7635]]
filings, including an opportunity for public comment.
DATES: Comments are due: February 22, 2010.
ADDRESSES: Submit comments elecrtonically via the Commission's Filing
Online system at www.http://prc.gov. Commenters who cannot submit their
views eletronically should contact the person identified in ``FOR
FURTHER INFORMATION CONTACT:'' for information about alternatives to
electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820 or prc.gov">stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 7648 (February 19,
2009).
Table of Contents
I. Introduction
II. Notice of Filing
III. Ordering Paragraphs
I. Introduction
On February 9, 2010, the Postal Service filed a notice announcing
that it has entered into two additional International Business Reply
Service (IBRS) Contracts.\1\ Additionally, the Postal Service filed a
formal request pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to
add IBRS Competitive Contract 2 to the Competitive Product List.\2\ The
Postal Service asserts that the new IBRS Competitive Contract 2 product
is a competitive product ``not of general applicability'' within the
meaning of 39 U.S.C. 3632(b)(3). Id. The Request has been assigned
Docket No. MC2010-18.
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\1\ Notice of the United States Postal Service of Filing Two
Functionally Equivalent IBRS Competitive Contracts and Request to
Establish Successor Instruments as Baseline International Business
Reply Service Competitive Contract 2, February 9, 2010 (Request).
\2\ Id. at 1. The Postal Service states that it is not currently
proposing to remove IBRS Contract 1 from the Competitive Product
List because the agreement in Docket No. CP2009-17 remains in place.
Id. at 2, n.5.
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The Postal Service contemporaneously filed two contracts related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contracts have been assigned Docket Nos. CP2010-21 and
CP2010-22.
The Postal Service uses IBRS contracts for customers that sell
lightweight articles to foreign consumers and desire to offer their
customers a way to return the articles to the United States for
recycling, refurbishment, repair, or value-added processing. Id. at 3.
The instant contracts. The Postal Service filed the instant
contracts pursuant to 39 CFR 3015.5. In addition, the Postal Service
contends that the contract is in accordance with Order No. 290.\3\ The
term of each contract is 1 year from the date the Postal Service
notifies the customer that all necessary regulatory approvals have been
received. The Postal Service states the instant contracts are to
replace the expiring contracts in Docket Nos. MC2009-14 and CP2009-
20.\4\ Id. at 3-4. The Postal Service notes that the current contracts
expire on February 28, 2010.\5\
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\3\ See Docket No. CP2009-50, Order Granting Clarification and
Adding Global Expedited Package Services 2 to the Competitive
Product List, August 28, 2009 (Order No. 290).
\4\ Docket Nos. MC2009-14 and CP2009-20, Request of the United
States Postal Service to Add International Business Reply Service
Contracts to the Competitive Products List, and Notice of Filing
(Under Seal) Contract and Enabling Governors' Decision, December 24,
2008.
\5\ The Postal Service states it is their intent that the new
contracts will begin on March 1, 2010. Id. at 4.
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In support of its Request, the Postal Service filed the following
attachments:
1. Attachment 1--a statement of supporting justification as
required by 39 CFR 3020.32;
2. Attachments 2-A and 2-B-- redacted copies of the contracts;
3. Attachments 3-A and 3-B--redacted copies of the certified
statements required by 39 CFR 3015.5(c)(2);
4. Attachment 4--Governors' Decision No. 08-24 which establishes
prices and classifications for the IBRS Contracts product and includes
Mail Classification Schedule language for IBRS contracts, formulas for
pricing along with an analysis, certification of the Governors vote,
and certification of compliance with 39 U.S.C.3633(a); and
5. Attachment 5--an application for non-public treatment of
materials to maintain the contracts and supporting documents under
seal.
Substantively, the Request seeks to add International Business
Reply Service Competitive Contract 2 to the Competitive Product List.
Id. at 1.
In the statement of supporting justification, Jo Ann Miller, former
Director, Global Business Development, asserts that the services to be
provided under the contracts will cover their attributable costs, make
a positive contribution to institutional costs, and increase
contribution toward the requisite 5.5 percent of total institutional
costs charged to competitive products. Id., Attachment 1. Thus, Ms.
Miller contends there will be no issue of subsidization of competitive
products by market dominant products as a result of these contracts.
Id.
Functional equivalency. The Postal Service asserts that the two
contracts have generally similar cost and market characteristics as
previous IBRS contracts. However, because it requests that the instant
contracts be deemed the new baseline contracts for the IBRS Competitive
Contract 2 product, the Postal Service considers the appropriate
analysis to be the comparison of the new contracts' cost attributes and
market characteristics with one another. Id. at 3. The Postal Service
indicates that the instant contracts differ from one another basically
only in the customer identity. Id. The Postal Service represents that
prices and classifications ``not of general applicability'' for IBRS
contracts were established by Governors' Decision No. 08-24 filed in
Docket Nos. MC2009-14 and CP2009-20. It also identifies the instant
contracts as fitting within the Mail Classification Schedule language
for IBRS contracts as included as an attachment to Governors' Decision
No. 08-24. Id. at 2.
The Request addresses reasons why IBRS Competitive Contract 2
should be added to the Competitive Product List and fits within the
Mail Classification Schedule language for the IBRS contracts. Id. at 5.
The Postal Service also explains that a redacted version of the
supporting financial documentation is included with this filing as a
separate Excel file. Id. at 3.
The Postal Service asserts that the instant contracts are in
compliance with 39 U.S.C. 3633, are functionally equivalent to one
another, fit within the IBRS Mail Classification Schedule language,
will serve as the new baseline contracts for the proposed product, and
should be grouped together under a single product. Id. at 6. It
requests that the instant contracts be included within the IBRS
Competitive Contract 2 product. Id.
II. Notice of Filing
The Commission establishes Docket Nos. MC2010-18, CP2010-21 and
CP2010-22 for consideration of matters identified in the Postal
Service's Request.
The Commission appoints Paul L. Harrington to serve as Public
Representative in these dockets.
Comments. 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 February 22,
2010. The public portions of these filings can be accessed via the
Commission's Web site (http://www.prc.gov).
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III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. MC2010-18, CP2010-21 and
CP2010-22 for consideration of the matters raised in these dockets.
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 February 22, 2010.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-3293 Filed 2-19-10; 8:45 am]
BILLING CODE 7710-FW-S