[Federal Register Volume 75, Number 3 (Wednesday, January 6, 2010)]
[Notices]
[Pages 880-881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31415]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2010-19; Order No. 374]


New Postal Product

AGENCY:  Postal Regulatory Commission.

[[Page 881]]


ACTION:  Notice.

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SUMMARY:  The Commission is noticing a recently-filed Postal Service 
request to add a Global Direct Contracts 1 agreement to the Competitive 
Product List. This notice addresses procedural steps associated with 
this filing.

DATES: Comments are due: January 6, 2010.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in ``FOR 
FURTHER INFORMATION CONTACT'' by telephone for advice on alternatives 
to electronic filing.

FOR FURTHER INFORMATION CONTACT:  Stephen L. Sharfman, General Counsel, 
202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION:
I. Background
II. Notice of Filing
III. Ordering Paragraphs

I. Background

    On December 23, 2009, the Postal Service filed a notice announcing 
that it has entered into an additional Global Direct Contracts 1 
agreement.\1\ Global Direct Contracts 1 provide a rate for mail 
acceptance within the United States and transportation to a receiving 
country, with the addition by the customer of appropriate foreign 
indicia, and payment by the Postal Service of the appropriate 
settlement charges to the receiving country. The Postal Service 
believes the instant agreement is functionally equivalent to previously 
submitted Global Direct Contracts 1 agreements, and supported by the 
Governors' Decision filed in Docket No. MC2008-7.\2\ The Postal Service 
contends that the instant agreement should be included within the 
Global Direct Contracts 1 product. Id. at 2.
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    \1\Notice of United States Postal Service Filing of Functionally 
Equivalent Global Direct Contracts 1 Negotiated Service Agreement, 
December 23, 2009 (Notice).
    \2\Notice at 1-2, citing Attachment 4 reflecting a redacted 
version of Decision of the Governors of the United States Postal 
Service on the Establishment of Prices and Classifications for 
Global Direct, Global Bulk Economy, and Global Plus Contracts 
(Governors' Decision No. 08-10), July 16, 2008. The Postal Service 
also filed under seal an unredacted version of the Governors' 
Decision in that docket.
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    The instant contract. The Postal Service filed the instant 
agreement pursuant to 39 CFR 3015.5. In addition, the Postal Service 
contends that the agreement is in accordance with PRC Order No. 153.\3\ 
Id. It submitted the contract and supporting material under seal, and 
attached the following:
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    \3\Docket Nos. MC2009-9, CP2009-10 and CP2009-11, Order 
Concerning Global Direct Contracts Negotiated Service Agreements, 
December 19, 2008 (Order No. 153).
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    1. Attachment 1--a redacted copy of the contract;
    2. Attachment 2--a certified statement required by 39 CFR 
3015.5(c)(2);
    3. Attachment 3--an application for non-public treatment of 
materials to maintain the contract and supporting documents under seal; 
and
    4. Attachment 4--a redacted copy of Governors' Decision No. 08-10, 
which establishes prices and classifications for Global Direct, Global 
Bulk Economy, and Global Plus Contracts.
    The Postal Service will notify the customer of the effective date 
of the contract, which is the immediate successor of the Global Direct 
contract at issue in Docket No. CP2009-18, within 30 days after 
receiving all regulatory approvals.\4\ Notice at 2-3. To that end, the 
Postal Service also explains that a redacted version of the supporting 
financial documentation is included with this filing as a separate 
Excel file. Id. at 2.
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    \4\ The contract at issue in Docket No. CP2008-19 was ruled 
functionally equivalent to other Global Direct Contracts, including 
the one at issue in Docket No. CP2008-11, which were added to the 
Competitive Product List. See Docket No. CP2009-18, Order Concerning 
Additional Global Direct Contracts Negotiated Service Agreement, 
January 9, 2009 (Order No. 166).
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    The Notice identifies the instant agreement as fitting within the 
Mail Classification Schedule language for Global Direct Contracts, and 
indicates that this agreement is set to replace the one expiring 
soon.\5\ The Notice also provides the Postal Service's rationale for 
concluding that the instant contract is functionally equivalent to the 
concurrently proposed new baseline contract filed in Docket Nos. 
CP2010-17 and CP2010-18. Id. The Postal Service submits that the 
instant contract and the proposed new baseline contract share similar 
cost and market characteristics with only a minor difference while the 
``core terms and conditions remain the same.'' Id. Unlike the proposed 
new baseline contract, the present contract ``allows the customer to 
tender items that meet the requirements for Canada Post's domestic Ad 
Mail service, in addition to the types of Canada Post items covered by 
the contract in Docket Nos. MC2010-17 and CP2010-18.'' Id. This kind of 
distinction, it adds, has not precluded functionally equivalent 
treatment in the past. Id. at 3, n.6, citing PRC Order No. 166. Thus, 
it concludes that ``this contract should be added to the existing 
Global Direct Contracts 1 product.'' Id. at 4.
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    \5\Id. The Postal Service also states that this agreement is 
scheduled to remain effective for one year subject to automatic 
renewal unless terminated by the parties. Id. at 3.
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II. Notice of Filing

    The Commission establishes Docket No. CP2010-19 for consideration 
of matters related to the agreement identified in the Postal Service's 
Notice.
    Interested persons may submit comments on whether the Postal 
Service's agreement is consistent with the policies of 39 U.S.C. 3632, 
3633, or 3642. Comments are due no later than January 6, 2010. The 
public portions of these filings can be accessed via the Commission's 
Web site (http://www.prc.gov).
    The Commission appoints Jeremy Simmons to serve as Public 
Representative in the captioned filing.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2010-19 for 
consideration of the matters raised in this docket.
    2. Pursuant to 39 U.S.C. 505, Jeremy Simmons 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 January 6, 2010.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-31415 Filed 01-05-10; 8:45 am]
BILLING CODE 7710-FW-S