[Federal Register Volume 74, Number 2 (Monday, January 5, 2009)]
[Rules and Regulations]
[Pages 219-220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-31252]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3020

[Docket Nos. MC2009-13 and CP2009-17; Order No. 158]


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 Express Mail & Priority Mail Contract 3 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 January 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 December 19, 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 3 to the Competitive Product List.\1\ The 
Postal Service asserts that the Express Mail & Priority Mail Contract 3 
product is a competitive product ``not of general applicability'' 
within the meaning of 39 U.S.C. 3632(b)(3). Request at 1. The Request 
has been assigned Docket No. MC2009-13. 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. CP2009-17.
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    \1\ Request of the United States Postal Service to Add Express 
Mail & Priority Mail Contract 3 to Competitive Product List and 
Notice of Establishment of Rates and Class Not of General 
Applicability, December 19, 2008 (Request).
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    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 Request seeks to add Express Mail 
& Priority Mail Contract 3 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 
Express Mail and Priority Mail Services (Governors' Decision No. 08-
23). The Governors' Decision includes an attachment which provides 
an analysis of the proposed Express Mail and Priority Mail Contract 
3 and certification of the Governors' vote. 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 the 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

[[Page 220]]

by market dominant products as a result of this contract. Id.
    Related contract. A redacted version of the specific Express Mail & 
Priority Mail Contract 3 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 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 3, 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. MC2009-13 and CP2009-17 for 
consideration of the Request pertaining to the proposed Express Mail & 
Priority Mail Contract 3 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 part 3020 subpart B. Comments are due no later than January 5, 
2009. 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.
    It is Ordered:
    1. The Commission establishes Docket Nos. MC2009-13 and CP2009-17 
for consideration of the matters raised in each 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 January 5, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Dated: December 23, 2008.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-31252 Filed 1-2-09; 8:45 am]
BILLING CODE 7710-FW-P