[Federal Register Volume 73, Number 216 (Thursday, November 6, 2008)]
[Notices]
[Pages 66074-66075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26520]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-6 and CP2009-7; Order No. 125]


Express Mail & 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 Express Mail & Priority Mail Contract 1 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 10, 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 Express 
Mail & Priority Mail Contract 1 to the Competitive Product List.\1\ The 
Postal Service asserts that the Express Mail & Priority Mail Contract 1 
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. MC2009-6.
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    \1\ Request of the United States Postal Service to Add Express 
Mail & Priority Mail Contract 1 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 has been assigned Docket No. CP2009-7. 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 Express Mail & Priority Mail 
Contract 1 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 & Express Mail Services (Governors' Decision No. 08-
17). The Governors' Decision includes an attachment which provides 
an analysis of the proposed Express Mail & Priority Mail 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).
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    In the statement of supporting justification, Kim Parks, 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 Express Mail & 
Priority Mail Contract 1 is included with the Request. The contract is 
for 3 years and is to be effective 1 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 A and Attachment E. It notes that actual 
performance under this contract could

[[Page 66075]]

vary from estimates, but concludes that the contract will remain 
profitable. Id., Attachment A.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Express Mail & 
Priority Mail 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. Id. at 2-3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-6 and CP2009-7 for 
consideration of the Request pertaining to the proposed Express Mail & 
Priority Mail Contract 1 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. MC2009-6 is reserved for those filings related to 
the proposed product and the requirements of Sec.  3642, while 
Docket No. CP2009-7 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. Comments are due no later than November 10, 2008. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Michael J. Ravnitzky to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-6 and CP2009-7 for 
consideration of the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Michael J. Ravnitzky 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 10, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-26520 Filed 11-5-08; 8:45 am]
BILLING CODE 7710-FW-P