[Federal Register Volume 75, Number 82 (Thursday, April 29, 2010)]
[Notices]
[Page 22633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-9887]



[[Page 22633]]

=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. CP2010-38 and CP2010-39; Order No. 446]


New Postal Product

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice.

-----------------------------------------------------------------------

SUMMARY:  The Commission is noticing a recently-filed Postal Service 
request to add two Global Expedited Package Services 2 contracts to the 
Competitive Product List. This notice addresses procedural steps 
associated with this filing.

DATES:  Comments are due: April 30, 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 the FOR 
FURTHER INFORMATION CONTACT section 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:

Table of Contents

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

I. Introduction

    On April 21, 2010, the Postal Service filed a notice announcing 
that it has entered into two additional Global Expedited Package 
Services 2 (GEPS 2) contracts.\1\ The Postal Service believes the 
instant contracts are functionally equivalent to previously submitted 
GEPS 2 contracts, and are supported by Governors' Decision No. 08-7, 
attached to the Notice and originally filed in Docket No. CP2008-4. Id. 
at 1, Attachment 3. The Notice also explains that Order No. 86, which 
established GEPS 1 as a product, also authorized functionally 
equivalent agreements to be included within the product, provided that 
they meet the requirements of 39 U.S.C. 3633. Id. at 1. In Order No. 
290, the Commission approved the GEPS 2 product.\2\
---------------------------------------------------------------------------

    \1\ (1) Notice of United States Postal Service Filing of Two 
Functionally Equivalent Global Expedited Package Services 2 
Negotiated Service Agreements and Application for Non-Public 
Treatment of Materials Filed Under Seal, April 21, 2010 (Notice).
    \2\ (2) 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).
---------------------------------------------------------------------------

    The instant contracts. The Postal Service filed the instant 
contracts pursuant to 39 CFR 3015.5. In addition, the Postal Service 
contends that each contract is in accordance with Order No. 86. 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. Notice at 2-3.
    In support of its Notice, the Postal Service filed four attachments 
as follows:
     Attachments 1A and 1B--redacted copies of the two 
contracts and applicable annexes;
     Attachments 2A and 2B--a certified statement required by 
39 CFR 3015.5(c)(2) for each of the two contracts;
     Attachment 3--a redacted copy of Governors' Decision No. 
08-7 which establishes prices and classifications for GEPS contracts, a 
description of applicable GEPS contracts, formulas for prices, an 
analysis and certification of the formulas and certification of the 
Governors' vote; and
     Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the contracts and supporting 
documents under seal.
    The Notice advances reasons why the instant GEPS 2 contracts fit 
within the Mail Classification Schedule language for GEPS 2. The Postal 
Service identifies customer-specific information, general contract 
terms and other differences that distinguish the instant contracts from 
the baseline GEPS 2 agreement, all of which are highlighted in the 
Notice. Id. at 3-6. These modifications as described in the Postal 
Service's Notice apply to each of the instant contracts.
    The Postal Service contends that the instant contracts are 
functionally equivalent to the GEPS 2 contracts filed previously 
notwithstanding these differences. Id. at 6-7.
    The Postal Service asserts that several factors demonstrate the 
contracts' functional equivalence with previous GEPS 2 contracts, 
including the product being offered, the market in which it is offered, 
and its cost characteristics. Id. at 3. The Postal Service concludes 
that because the GEPS agreements ``incorporate the same cost attributes 
and methodology, the relevant cost and market characteristics are 
similar, if not the same...'' despite any incidental differences. Id. 
at 6.
    The Postal Service contends that its filings demonstrate that each 
of the new GEPS 2 contracts comply with the requirements of 39 U.S.C. 
3633 and is functionally equivalent to previous GEPS 2 contracts. It 
also requests that the contracts be included within the GEPS 2 product. 
Id. at 7.

II. Notice of Filing

    The Commission establishes Docket Nos. CP2010-38 and CP2010-39 for 
consideration of matters related to the contracts identified in the 
Postal Service's Notice.
    These dockets are addressed on a consolidated basis for purposes of 
this order. Filings with respect to a particular contract should be 
filed in that docket.
    Interested persons may submit comments on whether the Postal 
Service's contracts are consistent with the policies of 39 U.S.C. 3632, 
3633 or 3642. Comments are due no later than April 30, 2010. 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 proceedings.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. CP2010-38 and CP2010-39 
for consideration of matters raised by the Postal Service's Notice.
    2. Comments by interested persons in these proceedings are due no 
later than April 30, 2010.
    3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as 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. 2010-9887 Filed 4-28-10; 8:45 am]
BILLING CODE 7710-FW-S