[Federal Register Volume 75, Number 68 (Friday, April 9, 2010)]
[Notices]
[Pages 18244-18245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8055]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-21 and CP2010-36; Order No. 437]


New 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 Global Reseller Expedited Package Contracts Negotiated 
Service Agreements to the Competitive Product List, along with a 
related contract. The notice addresses procedural steps.

DATES:  Comments are due: April 15, 2010.

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

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6824 or [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Introduction

    On March 29, 2010, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Global 
Reseller Expedited Package (GREP) Contracts to the Competitive Product 
List.\1\ The Postal Service asserts that Governors' Decision No. 10-1 
establishes prices and classifications ``not of general applicability'' 
within the meaning of 39 U.S.C. 3632(b)(3) for the GREP Contracts 
product.\2\ The Postal Service asserts this classification change is 
consistent with the requirements of 39 U.S.C. 3642, and further 
proposes conforming Mail Classification Schedule language. Id. at 1-2. 
This Request has been assigned Docket No. MC2010-21.
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    \1\ Request of the United States Postal Service to Add Global 
Reseller Expedited Package Contracts to the Competitive Products 
List, and Notice of Filing (Under Seal) of Contract and Enabling 
Governors' Decision, March 29, 2010 (Request).
    \2\ Governors' Decision No. 10-1, filed March 24, 2010, 
establishes prices and classifications not of general applicability 
for Global Reseller Expedited Package Contracts.
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    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. CP2010-36. The Postal 
Service filed a copy of the contract, Governors' Decision with 
attachments, and supporting financial documentation under seal. Id. at 
2.
    Additionally, in support of its Request, the Postal Service filed 
five attachments as follows:
    Attachment 1-a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
    Attachment 2-a redacted copy of Governors' Decision No. 10-
1 which establishes prices and classifications for GREP contracts, a 
description of applicable GREP contracts including proposed Mail 
Classification Schedule language, formulas for prices, an analysis and 
certification of the formulas as required by 39 CFR 3015 and 
certification of the Governors' vote;
    Attachment 3-a redacted copy of the contract, and 
applicable annexes;
    Attachment 4-a certified statement required by 39 CFR 
3015.5(c)(2); and
    Attachment 5-an application for non-public treatment of 
materials to maintain the contract and supporting documents under seal.
    In the Statement of Supporting Justification, Frank Cebello, 
Executive Director, Global Business Management, 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 1. Thus, Mr. 
Cebello contends there will be no issue of subsidization of competitive 
products by market dominant products as a result of this contract. Id. 
Joseph Moeller, Manager, Regulatory Reporting and Cost Analysis, 
Finance Department, certifies that the contract complies with 39 U.S.C. 
3633(a). Id., Attachment 4. He asserts that the prices for the GREP 
contract ``should cover its attributable costs and preclude the 
subsidization of competitive products by market dominant products.'' 
Id.
    The Postal Service states that it uses GREP contracts to provide 
discounted prices for Express Mail International and/or Priority Mail 
International to a Sales Agent also known as a Reseller. The Reseller, 
is not a mailer, but instead, markets Express Mail International and 
Priority Mail International at discounted prices to customers, 
particularly small- and medium-sized businesses. Id. at 3.
    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 Governors' Decision No. 10-1. 
Id. at 1. The term of the contract is one year from the date the Postal 
Service notifies the customer that all necessary regulatory approvals 
have been received. Id. at 3.
    Substantively, the Request seeks to add the instant GREP contract 
and any subsequent functionally equivalent GREP Contracts as one 
product to the Competitive Product List. Id. at 2.
    The Postal Service's Request advances reasons why the GREP 
Contracts product is competitive, not covered by the postal monopoly 
and is in compliance with 39 3642 (b)(2), all of which are highlighted 
in the Request. Id. at 3-4. The Postal Service urges the Commission to 
approve the request to add the GREP contracts product to the 
Competitive Product List. Id. at 7.

Notice of Filing

    The Commission establishes Docket Nos. MC2010-21 and CP2010-36 for

[[Page 18245]]

consideration of matters raised in the Postal Service's Notice.
    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, 39 CFR part 3015, and 39 CFR 
3020 subpart B.
    Comments are due no later than April 15, 2010. The public portions 
of these filings can be accessed via the Commission's Web site (http://www.prc.gov).
    The Commission appoints Kenneth Richardson to serve as Public 
Representative in these dockets.
III. Ordering Paragraphs
    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-21 and CP2010-36 
for consideration of matters raised by the Postal Service's Request.
    2. Comments by interested persons in these proceedings are due no 
later than April 15, 2010.
    3. Pursuant to 39 U.S.C. 505, Kenneth Richardson is appointed to 
serveas the 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.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-8055 Filed 4-8-10; 8:45 am]
BILLING CODE 7710-FW-S