[Federal Register Volume 74, Number 149 (Wednesday, August 5, 2009)]
[Pages 39123-39124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18769]



[Docket Nos. MC2009-37 and CP2009-56; Order No. 261]

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 17 to the Competitive Product 
List. The Postal Service has also 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 202-789-6829 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 17 to the Competitive Product List.\1\ The Postal Service 
asserts that Priority Mail Contract 17 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 
this contract are supported by Governors' Decision No. 09-6 in Docket 
No. MC2009-25. Id. at 1. The Request has been assigned Docket No. 

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 17 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. CP2009-56.
    Request. The Request includes (1) a redacted version of the 
contract; (2) 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 17 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

[[Page 39124]]

by market dominant products as a result of this contract. Id.
    Related contract. A redacted version of the specific Priority Mail 
Contract 17 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 either 
party, but could continue for 3 years without modification. See id., 
Attachment A. 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. The shipper will manifest pieces eligible for 
customized pricing, using a separate permit number to ship such pieces, 
and will begin using the Electronic Verification System (eVS) for 
shipments of such pieces. Annual price adjustments will be applied to 
shipper's eligible mailpieces. A party may not assign the agreement 
without the other party's consent, which may not be unreasonably 
    The Postal Service filed much of the supporting materials, 
including the specific Priority Mail Contract 17, 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. MC2009-37 and CP2009-56 for 
consideration of the Request pertaining to the proposed Priority Mail 
Contract 17 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 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. MC2009-37 and CP2009-56 
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. E9-18769 Filed 8-4-09; 8:45 am]