[Federal Register Volume 74, Number 138 (Tuesday, July 21, 2009)]
[Notices]
[Pages 35898-35899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17420]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2009-48 and CP2009-49; Order No. 250]


New Competitive Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add two additional Global Plus 2 contracts to the 
Competitive Product List. This notice addresses procedural steps 
associated with these filings.

DATES: Comments are due July 23, 2009.

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
II. Notice of Filing
III. Ordering Paragraphs

I. Background

    On July 13, 2009, the Postal Service filed a notice, pursuant to 39 
U.S.C. 3633 and 39 CFR 3015.5, announcing that it has entered into two 
additional Global Plus 2 contracts, which it states fit within the 
previously established Global Plus 2 Contracts product.\1\ The Postal 
Service states that the instant contracts are functionally equivalent 
to previously submitted Global Plus 2 contracts, are filed in 
accordance with Order No. 112 and are supported by Governors' Decision 
No. 08-10 filed in Docket No. MC2008-7.\2\ Notice at 1.
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    \1\ Notice of the United States Postal Service of Filing Two 
Functionally Equivalent Global Plus 2 Negotiated Service Agreements, 
July 13, 2009 (Notice).
    \2\ See Docket Nos. MC2008-7, CP2008-16 and CP2008-17, Order 
Concerning Global Plus 2 Negotiated Service Agreements, October 3, 
2008 (Order No. 112).
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    The Notice also states that in Docket No. MC2008-7, the Governors 
established prices and classifications for competitive products not of 
general applicability for Global Plus 2 contracts. The Postal Service 
relates that the instant contracts are the immediate successor 
contracts to those in Docket Nos. CP2008-16 and CP2008-17, which will 
expire soon, and which the Commission found to be functionally 
equivalent in Order No. 112. The Postal Service contends that the 
instant contracts should be included within the Global Plus 2 product 
on the Competitive Product List. Id. In support, the Postal Service has 
filed redacted versions of each contract and related materials as 
Attachments 1-A and 1-B. Redacted versions of the certified statements 
required by 39 CFR 3015.5 are included as Attachments 2-A and 2-B, 
respectively. The Postal Service states that the contracts should be 
included within the Global Plus 2 product and requests that the instant 
contracts be considered the ``baseline contracts for future functional 
equivalency analyses concerning this product.'' Id. at 2.
    The instant contracts. The Postal Service filed the instant 
contracts pursuant to 39 CFR 3015.5. The contracts become effective 
August 1, 2009, unless regulatory reviews affect that date, and have a 
one-year term.
    The Postal Service maintains that certain portions of each contract 
and certified statements required by 39 CFR 3015.5(c)(2), names and 
identifying information of the Global Plus 2 customers, related 
financial information, portions of the certified statements which 
contain costs and pricing as well as the accompanying analyses that 
provide prices, terms, conditions, and financial projections should 
remain under seal. Id. at 3.
    The Postal Service asserts the contracts are functionally 
equivalent because they share similar cost and market characteristics 
and should be classified as a single product. Id. at 3. It states that 
while the precursor contracts filed in Docket Nos. CP2008-16 and 
CP2008-17 exhibited minor distinctions based on differences in 
customers' negotiations, business needs or relationship with the Postal 
Service, the new versions of the agreements are identical to one 
another. Id. at 4.
    The Postal Service also states that the instant contracts' 
customers are the

[[Page 35899]]

same Postal Qualified Wholesalers (PQWs) as the parties to the 
contracts in Docket Nos. CP2008-16 and CP2008-17. Even though some 
terms and conditions of the contracts have changed, it states the 
essence of the service to the PQW customers is offering price-based 
incentives to commit large amounts of mail volume or postage revenue 
for Global Bulk Economy (GBE) and Global Direct (GD).\3\
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    \3\ The Postal Service states the commitments also account for 
International Priority Airmail (IPA), International Surface Air Lift 
(ISAL), Express Mail International (EMI), and Priority Mail 
International (PMI) items mailed under a separate but related Global 
Plus 1 contract with each customer. The Global Plus 1 contracts are 
the subject of a separate competitive products proceeding.
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    The Postal Service indicates that the instant contracts have 
material differences which include removal of retroactivity provisions, 
explanations of price modification as a result of currency rate 
fluctuations or postal administration fees; removal of language on 
enforcement of mailing requirements; and restructuring of price 
incentives, commitments, penalties and clarification of continuing 
contractual obligations in the event of termination.
    The Postal Service maintains these differences only add detail or 
amplify processes included in prior Global Plus 2 contracts. It 
contends because the contracts have the same cost attributes and 
methodology as well as similar cost and market characteristics, the 
differences do not affect the fundamental service being offered or the 
essential structure of the contracts. Id. at 8. It states the contracts 
are substantially similar both to one another and to the precursor 
Global Plus 2 contracts. Therefore, it asserts these contracts are 
``functionally equivalent in all pertinent respects.'' Id. at 8.

II. Notice of Filing

    The Commission establishes Docket Nos. CP2009-48 and CP2009-49 for 
consideration of the matters related to the contracts identified in the 
Postal Service's Notice.
    Interested persons may submit comments on whether the instant 
contracts are consistent with the policies of 39 U.S.C. 3632, 3622, or 
3642. Comments are due no later than July 23, 2009. 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. CP2009-48 and CP2009-49 
for consideration of the issues raised in these dockets.
    2. Comments by interested persons on issues in these proceedings 
are due no later than July 23, 2009.
    3. 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.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Issued: July 16, 2009.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-17420 Filed 7-20-09; 8:45 am]
BILLING CODE 7710-FW-P