[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Notices]
[Pages 7634-7636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3293]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-18, CP2010-21 and CP2010-22; Order No. 407]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: This notice informs the public that the Postal Service has 
filed a request to add International Business Reply Service Competitive 
Contract 2 to the Competitive Product List, along with two related 
contracts. It also addresses procedural steps associated with these

[[Page 7635]]

filings, including an opportunity for public comment.

DATES: Comments are due: February 22, 2010.

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

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 or prc.gov">stephen.sharfman@prc.gov.

SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 7648 (February 19, 
2009).

Table of Contents

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

I. Introduction

    On February 9, 2010, the Postal Service filed a notice announcing 
that it has entered into two additional International Business Reply 
Service (IBRS) Contracts.\1\ Additionally, the Postal Service filed a 
formal request pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to 
add IBRS Competitive Contract 2 to the Competitive Product List.\2\ The 
Postal Service asserts that the new IBRS Competitive Contract 2 product 
is a competitive product ``not of general applicability'' within the 
meaning of 39 U.S.C. 3632(b)(3). Id. The Request has been assigned 
Docket No. MC2010-18.
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    \1\ Notice of the United States Postal Service of Filing Two 
Functionally Equivalent IBRS Competitive Contracts and Request to 
Establish Successor Instruments as Baseline International Business 
Reply Service Competitive Contract 2, February 9, 2010 (Request).
    \2\ Id. at 1. The Postal Service states that it is not currently 
proposing to remove IBRS Contract 1 from the Competitive Product 
List because the agreement in Docket No. CP2009-17 remains in place. 
Id. at 2, n.5.
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    The Postal Service contemporaneously filed two contracts related to 
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 
3015.5. The contracts have been assigned Docket Nos. CP2010-21 and 
CP2010-22.
    The Postal Service uses IBRS contracts for customers that sell 
lightweight articles to foreign consumers and desire to offer their 
customers a way to return the articles to the United States for 
recycling, refurbishment, repair, or value-added processing. Id. at 3.
    The instant contracts. The Postal Service filed the instant 
contracts pursuant to 39 CFR 3015.5. In addition, the Postal Service 
contends that the contract is in accordance with Order No. 290.\3\ The 
term of each contract is 1 year from the date the Postal Service 
notifies the customer that all necessary regulatory approvals have been 
received. The Postal Service states the instant contracts are to 
replace the expiring contracts in Docket Nos. MC2009-14 and CP2009-
20.\4\ Id. at 3-4. The Postal Service notes that the current contracts 
expire on February 28, 2010.\5\
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    \3\ See Docket No. CP2009-50, Order Granting Clarification and 
Adding Global Expedited Package Services 2 to the Competitive 
Product List, August 28, 2009 (Order No. 290).
    \4\ Docket Nos. MC2009-14 and CP2009-20, Request of the United 
States Postal Service to Add International Business Reply Service 
Contracts to the Competitive Products List, and Notice of Filing 
(Under Seal) Contract and Enabling Governors' Decision, December 24, 
2008.
    \5\ The Postal Service states it is their intent that the new 
contracts will begin on March 1, 2010. Id. at 4.
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    In support of its Request, the Postal Service filed the following 
attachments:

    1. Attachment 1--a statement of supporting justification as 
required by 39 CFR 3020.32;
    2. Attachments 2-A and 2-B-- redacted copies of the contracts;
    3. Attachments 3-A and 3-B--redacted copies of the certified 
statements required by 39 CFR 3015.5(c)(2);
    4. Attachment 4--Governors' Decision No. 08-24 which establishes 
prices and classifications for the IBRS Contracts product and includes 
Mail Classification Schedule language for IBRS contracts, formulas for 
pricing along with an analysis, certification of the Governors vote, 
and certification of compliance with 39 U.S.C.3633(a); and
    5. Attachment 5--an application for non-public treatment of 
materials to maintain the contracts and supporting documents under 
seal.
    Substantively, the Request seeks to add International Business 
Reply Service Competitive Contract 2 to the Competitive Product List. 
Id. at 1.
    In the statement of supporting justification, Jo Ann Miller, former 
Director, Global Business Development, asserts that the services to be 
provided under the contracts will cover their attributable costs, make 
a positive contribution to institutional costs, and increase 
contribution toward the requisite 5.5 percent of total institutional 
costs charged to competitive products. Id., Attachment 1. Thus, Ms. 
Miller contends there will be no issue of subsidization of competitive 
products by market dominant products as a result of these contracts. 
Id.
    Functional equivalency. The Postal Service asserts that the two 
contracts have generally similar cost and market characteristics as 
previous IBRS contracts. However, because it requests that the instant 
contracts be deemed the new baseline contracts for the IBRS Competitive 
Contract 2 product, the Postal Service considers the appropriate 
analysis to be the comparison of the new contracts' cost attributes and 
market characteristics with one another. Id. at 3. The Postal Service 
indicates that the instant contracts differ from one another basically 
only in the customer identity. Id. The Postal Service represents that 
prices and classifications ``not of general applicability'' for IBRS 
contracts were established by Governors' Decision No. 08-24 filed in 
Docket Nos. MC2009-14 and CP2009-20. It also identifies the instant 
contracts as fitting within the Mail Classification Schedule language 
for IBRS contracts as included as an attachment to Governors' Decision 
No. 08-24. Id. at 2.
    The Request addresses reasons why IBRS Competitive Contract 2 
should be added to the Competitive Product List and fits within the 
Mail Classification Schedule language for the IBRS contracts. Id. at 5. 
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 3.
    The Postal Service asserts that the instant contracts are in 
compliance with 39 U.S.C. 3633, are functionally equivalent to one 
another, fit within the IBRS Mail Classification Schedule language, 
will serve as the new baseline contracts for the proposed product, and 
should be grouped together under a single product. Id. at 6. It 
requests that the instant contracts be included within the IBRS 
Competitive Contract 2 product. Id.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-18, CP2010-21 and 
CP2010-22 for consideration of matters identified in the Postal 
Service's Request.
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.
    Comments. 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 February 22, 
2010. The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).

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III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-18, CP2010-21 and 
CP2010-22 for consideration of the matters raised in these dockets.
    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 February 22, 2010.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-3293 Filed 2-19-10; 8:45 am]
BILLING CODE 7710-FW-S