[Federal Register Volume 73, Number 214 (Tuesday, November 4, 2008)]
[Notices]
[Pages 65708-65709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26261]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-3 and CP2009-4; Order No. 121]


Express Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Express Mail Contract 2 to the Competitive Product List. 
The Postal Service has also filed a related contract. The notice 
addresses procedural steps associated with these filings.

DATES: Comments are due November 5, 2008.

ADDRESSES: Submit comments 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].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    On October 24, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Express 
Mail Contract 2 to the Competitive Product List.\1\ The Postal Service 
asserts that the Express Mail Contract 2 product is a competitive 
product ``not of general applicability'' within the meaning of 39 
U.S.C. 3632(b)(3). Id. at 1. The Request has been assigned Docket No. 
MC2009-3.
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    \1\ Request of the United States Postal Service to Add Express 
Mail Contract 2 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
October 24, 2008 (Request). Due to issues with the filing of 
electronic documents under seal, the unredacted information was not 
filed until around 4 p.m. on October 27, 2008.
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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. CP2009-4. 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, the Request asks the Commission to add the Express Mail 
Contract 2 product to the Competitive Product List. Id. at 1-2. The 
Postal Service states the services to be provided under the contract 
will cover their attributable costs and make a positive contribution to 
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 D. 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.
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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 Rate and Class Not of General Applicability for 
Express Mail Service (Governors' Decision No. 08-14). The Governors' 
Decision includes an attachment which provides an analysis of the 
proposed Express Mail Contract 2. 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).
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    Related contract. A redacted version of the specific Express Mail 
Contract 2 is included with the Request. The contract is for 3 years 
and is to be effective the day after the Commission provides all 
necessary regulatory approvals. The Postal Service represents that the 
contract is consistent with 39 U.S.C. 3633(a) and 39 CFR 3015.7(c). See 
id., 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 Express Mail 
Contract 2, 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. 
Id. at 2.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-3 and CP2009-4 for 
consideration of the Request pertaining to the proposed Express Mail 
Contact 2 product and the related contract, respectively. 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.\3\
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    \3\ Docket No. MC2009-3 is reserved for only those filings 
related to the proposed product and the requirements of Sec.  3642, 
while Docket No. CP2009-4 is reserved for those filings specific to 
the contract and the requirements of Sec.  3633.
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    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 part 3020, subpart B. Comments are due no later than November 5, 
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. Ordering Paragraphs

It is Ordered:

    1. The Commission establishes Docket Nos. MC2009-3 and CP2009-4 for 
consideration of the matters raised in each respective 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 November 5, 2008.

[[Page 65709]]

    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-26261 Filed 11-3-08; 8:45 am]
BILLING CODE 7710-FW-P