[Federal Register Volume 73, Number 216 (Thursday, November 6, 2008)]
[Notices]
[Pages 66076-66077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26517]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-2 and CP2009-3; Order No. 122]


Priority 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 Priority Mail Contract 2 to the Competitive Product 
List. The Postal Service has also filed a related contract. This notice 
addresses procedural steps associated with these filings.

DATES: Comments are due November 6, 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 Priority 
Mail Contract 2 to the Competitive Product List.\1\ The Postal Service 
asserts that the Priority 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. 
MC2009-2.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 2 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
October 24, 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 has been assigned Docket No. CP2009-3. 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 seeks to add Priority Mail Contract 2 to the 
Competitive Product List. Id. at 1-2.
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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 
Priority Mail Contract 2 (Governors' Decision No. 08-13). The 
Governors' Decision includes an attachment which provides an 
analysis of the proposed Priority Mail Contract 2. Attachment B is a 
redacted version of the contract. Attachment C shows the requested 
changes in 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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    In the statement of supporting justification, Kim Parks, Manager, 
Sales and Communications, Expedited Shipping, asserts that the service 
to be provided under the contract will cover its attributable costs, 
make a positive contribution to institutional costs, and increase 
contribution toward the requisite 5.5 percent of the Postal Service's 
total institutional costs. Id., Attachment D. Thus, Ms. Parks contends 
there will be no issue of subsidization of competitive products by 
market dominant products as a result of this contract. Id.
    Related contract. A redacted version of the specific Priority Mail 
Contract 2 is included with the Request. The contract is for 1 year and 
is to be effective 1 day after the Commission approves the required 
addition of this product to the product list unless that date is later 
than November 10, 2008; then the effective date is deferred until 
January 1, 2009.\3\ 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 A and Attachment D. It notes that there is some risk of not 
meeting the expected cost coverage; for instance, if the pieces become 
less dense, or if a greater number of pieces travel a longer distance 
than expected but concludes that the risks are manageable and the 
contract will remain profitable. Id., Attachment A.
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    \3\ Errata to Request of the United States Postal Service to Add 
Priority Mail Contract 2 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
October 27, 2008 (Errata).
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    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Priority 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 the prices, 
terms, conditions, and financial projections, should remain under seal. 
Id. at 2.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-2 and CP2009-3 for 
consideration of the Request pertaining to the Priority Mail Contract 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.\4\
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    \4\ Docket No. MC2009-2 is reserved for those filings related to 
the proposed product and the requirements of Sec.  3642, while 
Docket No. CP2009-3 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 3020 subpart B. The Postal Service expresses the hope that the 
Commission can complete its

[[Page 66077]]

review and issue an order approving Priority Mail Contract 2 no later 
than November 10, 2008.\5\ Recognizing that these filings have been 
available on the Commission's Web site since October 24, 2008 and in 
light of the Postal Service's Request, comments are due no later than 
November 6, 2008. The public portions of these filings can be accessed 
via the Commission's Web site (http://www.prc.gov).
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    \5\ Errata at 1. The Commission appreciates the time pressures 
confronting the Postal Service regarding these types of agreements. 
Within the bounds of due process, the Commission endeavors to act 
expeditiously on the Postal Service's Requests. The Commission 
observes that the Postal Service has the responsibility to provide 
the Commission sufficient time to perform its review and analysis 
with due diligence.
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    The Commission appoints Paul L. Harrington to serve as Public 
Representative in the captioned filings.

III. Ordering Paragraphs

    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-2 and CP2009-3 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 6, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
 [FR Doc. E8-26517 Filed 11-5-08; 8:45 am]
BILLING CODE 7710-FW-P