[Federal Register Volume 74, Number 149 (Wednesday, August 5, 2009)]
[Pages 39122-39123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18768]



[Docket Nos. MC2009-36 and CP2009-55; Order No. 260]

Priority Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.


SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Priority Mail Contract 16 to the Competitive Product 
List. The Postal Service also has filed a related contract. This notice 
addresses procedural steps associated with these filings.

DATES: Comments are due August 6, 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, 
at 202-789-6820 or [email protected].


I. Introduction
II. Notice of Filings
III. Ordering Paragraphs

I. Introduction

    On July 24, 2009, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority 
Mail Contract 16 to the Competitive Product List.\1\ The Postal Service 
asserts that Priority Mail Contract 16 is a competitive product ``not 
of general applicability'' within the meaning of 39 U.S.C. 3632(b)(3). 
The Postal Service states that prices and classification underlying the 
contract are supported by Governors' Decision No. 09-6 in Docket No. 
MC2009-25. Id. at 1. The Request has been assigned Docket No. MC2009-

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 16 to Competitive Product List and Notice of Filing 
(Under Seal) of Contract and Supporting Data, July 24, 2009 

    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. CP2009-55.
    Request. The Request includes (1) a redacted version of the 
contract; (2)

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requested changes in the Mail Classification Schedule product list; (3) 
a Statement of Supporting Justification as required by 39 CFR 3020.32; 
and (4) certification of compliance with 39 U.S.C. 3633(a).\2\ 
Substantively, the Request seeks to add Priority Mail Contract 16 to 
the Competitive Product List. Id. at 1-2.

    \2\ Attachment A to the Request is the redacted version of the 
contract. Attachment B shows the requested changes to the Mail 
Classification Schedule product list. Attachment C provides a 
statement of supporting justification for this Request. Attachment D 
provides the certification of compliance with 39 U.S.C. 3633(a).

    In the statement of supporting justification, Mary Prince Anderson, 
Acting 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 C. 
Thus, Ms. Anderson 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 Priority Mail 
Contract 16 is included with the Request. The contract will become 
effective on the day that the Commission provides all necessary 
regulatory approvals. It is terminable upon 30 days' notice by a party, 
but could continue for 1 year without modification. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a)(1). 
See id., Attachment D.
    The Postal Service will provide the shipper with customized pricing 
for eligible Priority Mail items shipped by the shipper, as well as 
Priority Mail packaging and labels. A party may not assign the 
agreement without the other party's consent, which may not be 
unreasonably withheld.
    The Postal Service filed much of the supporting materials, 
including the specific Priority Mail Contract 16, 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. MC2009-36 and CP2009-55 for 
consideration of the Request pertaining to the proposed Priority Mail 
Contract 16 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 August 6, 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.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2009-36 and CP2009-55 
for consideration of the matter 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 August 6, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Issued: July 29, 2009.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-18768 Filed 8-4-09; 8:45 am]