[Federal Register Volume 74, Number 139 (Wednesday, July 22, 2009)]
[Notices]
[Pages 36276-36277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17496]


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POSTAL REGULATORY COMMISSION

[Docket Nos. CP2009-46 and CP2009-47; Order No. 249]


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 1 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 1 contracts, which it states fits within the 
previously established Global Plus Contracts product.\1\ The Postal 
Service states that the instant contracts are functionally equivalent 
to previously submitted Global Plus 1 contracts, are filed in 
accordance with Order No. 85, and are supported by Governors' Decision 
No. 08-8 filed in Docket No. CP2008-8.\2\ Notice at 1.
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    \1\ Notice of the United States Postal Service of Filing Two 
Functionally Equivalent Global Plus 1 Contracts Negotiated Service 
Agreements, July 13, 2009 (Notice).
    \2\ See Docket No. CP2008-8 through CP2008-10, PRC Order No. 85, 
Order Concerning Global Plus Negotiated Service Agreements, June 27, 
2008.
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    The Notice also states that in Docket No. CP2008-8, the Governors 
have established prices and classifications for competitive products 
not of general applicability for Global Plus Contracts.\3\ The Postal 
Service states that the instant contracts are the immediate successor 
contracts to those in Docket Nos. CP2008-9 and CP2008-10, both of which 
are to expire soon, which the Commission found to be functionally 
equivalent in Order No. 85.
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    \3\ See Docket No.CP2008-8, Notice of United States Postal 
Service of Governors' Decision Establishing Prices and 
Classifications for Global Plus Contracts, June 2, 2008, at 1.
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    The Postal Service contends that the instant contracts should be 
included within the Global Plus 1 product on the Competitive Product 
List. Id.
    In support, the Postal Service has also 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 1 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 statement required by 39 CFR 3015.5(c)(2), containing 
names and identifying information of the Global Plus 1 customers, 
related financial information, 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. CP2008-9 and CP2008-
10 exhibited minor distinctions based on differences in customers' 
negotiations, business needs or relationship with the Postal Service, 
the new versions of the agreements differ primarily in the method used 
for structuring the discounts offered. Id. at 4. The Postal Service 
also states that the instant contracts' customers are the same Postal 
Qualified Wholesalers (PQWs) as the parties to the contracts in Docket 
Nos. CP2008-9 and CP2008-10. 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 International Priority Airmail 
(IPA), International Surface Air Lift (ISAL), Express Mail 
International (EMI), and Priority Mail International (PMI).\4\
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    \4\ The Postal Service states the commitments also account for 
Global Bulk Economy and Global Direct items mailed under a separate 
but related Global Plus 2 contract with each customer. The Global 
Plus 2 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 removing retroactivity provisions; 
clarifying aspects subject to regulatory oversight; expanding entry 
locations; restructuring price incentives, commitments, and penalties; 
and clarifying the parties' obligations in the event of termination. 
Id. at 4-7.
    The Postal Service maintains these differences only add detail or 
amplify processes included in prior Global Plus 1 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 7-8. It states the 
contracts are substantially similar both to one another and to the 
precursor Global Plus 1 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. CP2009-46 and CP2009-47 for 
consideration of the matters related to the contract 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. CP2009-46 and CP2009-47 
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

[[Page 36277]]

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. E9-17496 Filed 7-21-09; 8:45 am]
BILLING CODE 7710-FW-P