[Federal Register Volume 73, Number 210 (Wednesday, October 29, 2008)]
[Notices]
[Pages 64370-64371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25743]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-1 and CP2009-2; Order No. 119]


Parcel Return Service Contract 1

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal. Service 
Parcel Return Service Contract 1 negotiated service agreement. This 
action is consistent with changes in a recent law governing postal 
operations.

DATES: 1. Postal Service answers due on or before October 27, 2008.
    2. Public comments due on October 29, 2008.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    On October 15, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Parcel 
Return Service Contract 1 to the competitive product list.\1\ The 
Postal Service asserts that the Parcel Return Service Contract 1 
product is a competitive product ``not of general applicability'' 
within the meaning of 39 U.S.C. 3632(b)(3). Id. at

[[Page 64371]]

1. The Request has been assigned Docket No. MC2008-8.
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    \1\ Request of the United States Postal Service to Add Parcel 
Return Service Contract to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
October 15, 2008 (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 is assigned Docket No. CP2009-2. The Postal 
Service represents that the contract fits within the proposed Mail 
Classification Schedule (MCS) language.
    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 MCS 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, it requests that the Parcel Return Service Contract 1 
product be added to the competitive product list. Request at 1-2. The 
Postal Service states the service to be provided under the contract 
will cover its attributable costs and make a positive contribution to 
coverage of institutional costs. Id., Attachment D. The Postal Service 
also asserts that the contract will increase contribution toward the 
requisite 5.5 percent of the Postal Service's total institutional 
costs. Id., Attachment E. As a result, the Request contends there will 
be no issue of subsidization of competitive products by market dominant 
products as a result of this contract. Id. at 1.
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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 Rates and Classes Not of General Applicability for 
Parcel Return Service (Governors' Decision No. 08-12). The 
Governors' Decision includes an attachment which is an analysis of 
the proposed Parcel Return Service Contract 1. Attachment B is the 
redacted version of the contract. Attachment C shows the requested 
changes to the MCS 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). Unredacted 
documents and additional supporting information were filed under 
seal.
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    Related Contract. A redacted version of the specific Parcel Return 
Service Contract 1 is included with the Request. The contract is for 2 
years and is to be effective 1 day after the Commission approves the 
required addition of this product to the product list. The Postal 
Service represents that the contract is consistent with 39 U.S.C. 
3633(a) and 39 CFR 3015.7(c). See Request, Attachment to Governors' 
Decision and Attachment E. It notes that actual performance under this 
contract could vary from estimates, but concludes that the contract 
will remain profitable. Id., Attachment to Governors' Decision.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Parcel Return 
Service Contract 1, 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. Request at 2.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-1, and CP2009-2 for 
consideration of the Request pertaining to the Parcel Return Service 
Contract 1 product and the related contract. 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 October 29, 2008. 
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. Confidentiality

    As noted, the Postal Service filed much of the supporting materials 
under seal, including, among other things, (1) the Governor's 
certification and voting record, and (2) the signatures, printed names, 
titles and dates executing the contract on behalf of the Postal 
Service. The foregoing material would not appear to warrant 
confidential treatment. The Postal Service should file unredacted 
copies of the foregoing no later than October 27, 2008. Alternatively, 
if the Postal Service believes that such material should remain 
confidential, it shall file a detailed justification for its position 
no later than October 27, 2008.
    The Commission takes its responsibility to protect confidential 
information very seriously. For the Commission to adequately 
differentiate confidential information from non-confidential 
information, participants should appropriately label every page of a 
confidential document as confidential. This duty to label extends to 
all sheets of supporting spreadsheets submitted by participants. The 
Postal Service is urged to employ this practice.

IV. Supplemental Information

    The Commission has reviewed the Postal Service's filings in these 
dockets. Pursuant to 39 CFR 3015.6, the Commission requests the Postal 
Service to provide written responses to the following questions. 
Answers should be provided as soon as practicable, but no later than 
October 27, 2008.
    1. The following Excel spreadsheet incorporates several cost 
savings measures: ContractFinancialAnalysisPRS[contract partner].xls. 
Please provide a narrative describing the basis for these cost savings.
    2. Please provide the supporting data and narrative explanation for 
the value for the following Excel file: 
ContractFinancialAnalysisPRS[contract partner].xls tab: PartnerProfile 
cell:C5.
    3. (a) Please provide the formulas and the underlying data 
supporting them for all ``hardcoded'' numbers for the Excel file 
identified in Question 2.
    (b) Do the underlying data reflect volume shifts due to this 
contract? If not, please explain.
    4. Will the methodology approved in Docket No. RM2008-6 be used for 
purposes of updating costs for subsequent years of this contract?
    It is ordered:
    1. The Commission establishes Docket Nos. MC2009-1 and CP2009-2 for 
consideration of the matters 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 October 29, 2008.
    4. The Postal Service is directed to respond to the Commission's 
inquiries with respect to confidentiality and supplemental information 
as set forth in Sections III and IV of this Order no later than October 
27, 2008.
    5. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.

    Issued October 22, 2008.
Judith M. Grady,
Acting Secretary.
[FR Doc. E8-25743 Filed 10-28-08; 8:45 am]
BILLING CODE 7710-FW-P