[Federal Register Volume 73, Number 235 (Friday, December 5, 2008)]
[Notices]
[Pages 74214-74215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28834]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-11 and CP2009-13; Order No. 142]


New Competitive Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Parcel Select & Parcel Return Service Contract 1 to the 
Competitive Product List. The Postal Service has also filed one related 
contract. This notice addresses procedural steps associated with these 
filings.

DATES: Comments due December 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. Background

    On November 25, 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 
Select & Parcel Return Service Contract 1 to the Competitive Product 
List.\1\ The Postal Service asserts that the Parcel Select & 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 1. The Request has been assigned Docket No. MC2009-11.
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    \1\ Request of the United States Postal Service to Add Parcel 
Select & Parcel Return Service Contract 1 to Competitive Product 
List and Notice of Establishment of Rates and Class Not of General 
Applicability, November 25, 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. CP2009-13.
    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 Mail Classification 
Schedule 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

[[Page 74215]]

Request seeks to add Parcel Select & Parcel Return Service 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 
Parcel Select & Parcel Return Service Contract 1 (Governors' 
Decision No. 08-21). The Governors' Decision includes an attachment 
which provides an analysis of the proposed Parcel Select & Parcel 
Return Service Contract 1. Attachment B is the redacted version of 
the contract. Attachment C shows the requested changes to the Mail 
Classification Schedule 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, Daniel J. Barrett, 
Acting Manager, Product & Business Development, Ground Shipping 
Services, 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, Mr. Barrett 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 Parcel Select 
& Parcel Return Service Contract 1 is included with the Request. The 
contract is to expire on May 31, 2011,\3\ 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 the agreement remains profitable regardless 
of discount level and results in a positive contribution impact of the 
Postal Service under all conditions. Id., Attachment A.
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    \3\ The agreement may also be terminated sooner or be extended 
for an additional year under terms and conditions discussed in the 
contract. See Attachment B at Section III.
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    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the specific Parcel Select & 
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. Id. at 2-3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2009-11 and CP2009-13 for 
consideration of the Request pertaining to the proposed Parcel Select & 
Parcel Return Service 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.
    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 December 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.
    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-11 and CP2009-13 
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 December 10, 2008.
    4. The Secretary shall arrange for the publication of this Order in 
the Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-28834 Filed 12-4-08; 8:45 am]
BILLING CODE 7710-FW-P