[Federal Register Volume 73, Number 216 (Thursday, November 6, 2008)]
[Notices]
[Pages 66077-66078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26518]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-5 and CP2009-6; Order No. 124]


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 4 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 7, 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 27, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the 
Priority Mail Contract 4 product to the Competitive Product List. The 
Postal Service asserts that the Priority Mail Contract 4 product is a 
competitive product ``not of general applicability'' within the meaning 
of 39 U.S.C. 3632(b)(3). This Request has been assigned Docket No. 
MC2009-5.\1\
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 4 to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
October 27, 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. CP2009-6. The Postal 
Service represents that the contract fits within the proposed Mail 
Classification Schedule (MCS) language.
    Request. The Request is filed pursuant to 39 U.S.C. 3642 and 39 CFR 
3020.30 et seq. 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) 
submission of supporting material under seal; and (5) certification of 
compliance with 39 U.S.C. 3633(a).\2\ The Request seeks to add Priority 
Mail Contract 4 to the Competitive Product List. Request 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 Class Not of General Applicability for 
Priority Mail Service (Governors' Decision No. 08-16). The 
Governors' Decision includes an attachment which provides an 
analysis of the proposed Priority Mail Service Contract. 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 4 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 id., Attachment A and Attachment D. It notes 
that there is some risk of not meeting the expected cost coverage, 
based, for example, on pieces becoming less dense or traveling a longer 
distance than expected. The Postal Service concludes, however, that the 
risks are manageable and expects the contract to remain profitable. 
Id., Attachment A.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Priority Mail 
Contract 4 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. MC2009-5 and CP2009-6 for 
consideration of the Request pertaining to the Priority Mail Contract 4 
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. Comments are due no later 
than November 7, 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 the captioned filings.

III. Ordering Paragraphs

    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-5 and CP2009-6 for 
consideration of the matters raised in each docket.
    2. The Commission, pursuant to 39 U.S.C. 505, appoints Paul L. 
Harrington

[[Page 66078]]

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 7, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-26518 Filed 11-5-08; 8:45 am]
BILLING CODE 7710-FW-P