[Federal Register Volume 74, Number 158 (Tuesday, August 18, 2009)]
[Notices]
[Pages 41758-41759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19808]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2009-59; Order No. 275]


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 a Global Expedited Package Services 1 (GEPS 1) contract 
to the Competitive Product List. This notice addresses procedural steps 
associated with this filing.

DATES: Comments are due August 19, 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. Introduction
II. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    On August 7, 2009, the Postal Service filed a notice announcing 
that it has entered into an additional Global Expedited Package 
Services 1 (GEPS 1) contract.\1\ GEPS 1 provides volume-based 
incentives for mailers that send large volumes of Express Mail 
International (EMI) and/or Priority Mail International (PMI). The 
Postal Service believes the instant contract is functionally equivalent 
to previously submitted GEPS 1 contracts, and is supported by the 
Governors' Decision filed in Docket No. CP2008-4.\2\ Notice at 1. It 
further notes that in Order No. 86, which established GEPS 1 as a 
product, the Commission held that additional contracts may be included 
as part of the GEPS 1 product if they meet the requirements of 39 
U.S.C. 3633, and if they are functionally equivalent to previously 
submitted GEPS 1 contracts.\3\ Notice at 1-2.
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    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Expedited Package Services 1 
Negotiated Service Agreement and Application for Non-Public 
Treatment of Materials Filed Under Seal, August 7, 2009 (Notice).
    \2\ See Docket No. CP2008-4, Notice of United States Postal 
Service of Governors' Decision Establishing Prices and 
Classifications for Global Expedited Package Services Contracts, May 
20, 2008.
    \3\ See Docket No. CP2008-5, Order Concerning Global Expedited 
Package Services Contracts, June 27, 2008, at 7 (Order No. 86).
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    The instant contract. The Postal Service filed the instant contract 
pursuant to 39 CFR 3015.5. In addition, the Postal Service contends 
that the contract is in accordance with Order No. 86. It filed an 
application for non-public treatment of materials to maintain the 
contract and supporting documents under seal as Attachment 1 to the 
Notice. Id., Attachment 1.
    The Notice also includes, as Attachment 2, a redacted copy of

[[Page 41759]]

Governors' Decision No. 08-7 which establishes prices and 
classifications for GEPS contracts. The Postal Service submitted the 
contract and supporting material under seal, and attached a redacted 
copy of the contract and certified statement required by 39 CFR 
3015.5(c)(2) to the Notice as Attachments 3 and 4, respectively. Id. at 
2. The term of the instant contract is one year from the date the 
Postal Service notifies the customer that all necessary regulatory 
approvals have been received.
    The Notice advances reasons why the instant GEPS 1 contract fits 
within the Mail Classification Schedule language for GEPS 1. The Postal 
Service contends that the instant contract satisfies the pricing 
formula and classification system established in Governors' Decision 
No. 08-7. In addition, it states that several factors demonstrate the 
contract's functional equivalence with the previous GEPS 1 contracts, 
including the following: the customers are small or medium-sized 
businesses that mail directly to foreign destinations using EMI and/or 
PMI; the contract term of one year applies to all GEPS 1 contracts; the 
contracts have similar cost and market characteristics; and each 
requires payment through permit imprint. Id. at 4. It asserts that even 
though prices may be different based on volume or postage commitments 
made by the customers, or updated costing information, these 
differences do not affect the contract's functional equivalency because 
the GEPS 1 contracts share similar cost attributes and methodology. Id. 
at 4-5.
    The Postal Service identifies other provisions which it states 
reflect minor differences between mailers.\4\ These distinctions 
include provisions clarifying the correlation between regulatory 
oversight and contract expiration \5\ and the availability of other 
Postal Service products and services; exclusion of certain flat rate 
products from the mail qualifying for discounts; a simpler mailing 
notice requirement along with provisions to meet scheduling needs; mail 
tender location changes; specific liquidated damages terms; provisions 
clarifying the mailer's volume and revenue commitment calculation in 
the event of early termination; and provisions clarifying aspects 
subject to regulatory oversight or revisions to update terms or 
references from a prior contract. Id. at 5-6.
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    \4\ The Postal Service states that the instant contract is the 
same as the contract approved by the Commission in Docket No. 
CP2009-50, Order Concerning Filing of Additional Global Expedited 
Package Services 1 Negotiated Service Agreement, July 29, 2009. It 
asserts the only differences are the liquidated damages provisions 
and tender provisions. Id. at 2, n.4.
    \5\ The Postal Service states that some of the contracts 
generally provide that if all applicable reviews have not been 
completed at the time an older contract expires, the mailer must pay 
published prices until some alternative becomes available. In the 
instant case, the Postal Service seeks approval of a new GEPS 1 
contract with a new customer.
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    The Postal Service states that these differences related to a 
particular mailer are ``incidental differences'' and do not change the 
conclusion that these agreements are functionally equivalent in all 
substantive aspects. Id. at 6.
    The Postal Service concludes that this contract is functionally 
equivalent to previous GEPS 1 contracts and requests that this contract 
be included within the GEPS 1 product. Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2009-59 for consideration 
of matters related to the contract identified in the Postal Service's 
Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632, 
3622 or 3642. Comments are due no later than August 19, 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 the captioned filing.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2009-59 for 
consideration of the issues raised in this docket.
    2. Comments by interested persons in these proceedings are due no 
later than August 19, 2009.
    3. 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.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ann C. Fisher,
Acting Secretary.
[FR Doc. E9-19808 Filed 8-17-09; 8:45 am]
BILLING CODE 7710-FW-P