[Federal Register Volume 75, Number 142 (Monday, July 26, 2010)]
[Notices]
[Pages 43581-43582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18163]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-26, CP2010-67 and CP2010-68; Order No. 491]


New Postal Product

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice.

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SUMMARY:  The Commission is noticing a recently-filed Postal Service 
filing to add Global Plus 1A Contracts (CP2008-9 and CP2008-10) to the 
competitive product list. The Postal Service has also filed related 
contracts. This notice addresses procedural steps associated with the 
filing.

DATES:  Comments are due: July 26, 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, 
[email protected] or 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Introduction

    The Postal Service seeks to add a new product, Global Plus 1A, to 
the competitive product list and, to that end, filed notice, pursuant 
to 39 CFR 3015.5, announcing that it has entered into two Global Plus 
1A contracts.\1\ The Postal Service states that the instant contracts 
are functionally equivalent with one another and to previously 
submitted Global Plus 1 contracts.\2\ It states further that the 
instant contracts are supported by Governors' Decision No. 08-8, which 
establishes prices and classifications not of general applicability for 
Global Plus Contracts.\3\
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    \1\ Notice of the United States Postal Service of Filing Two 
Functionally Equivalent Global Plus 1A Contracts Negotiated Service 
Agreements, July 13, 2010 (Notice); see also Errata to Notice of the 
United States Postal Service of Filing Two Functionally Equivalent 
Global Plus 1A Contracts Negotiated Service Agreements, July 14, 
2010; Notice of the United States Postal Service of Filing a Signed 
Global Plus 1A Negotiated Service Agreement, July 15, 2010.
    \2\ See Docket Nos. CP2008-8 through CP2008-10, Order Concerning 
Global Plus Negotiated Service Agreements, June 27, 2008 (Order No. 
85).
    \3\ See Docket No. CP2008-8, Notice of United States Postal 
Service of Governors' Decision Establishing Prices and 
Classifications for Global Plus Contracts, June 2, 2008, at 1.
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    While the Postal Service's filing was not submitted pursuant to 39 
CFR 3020.30 et seq., it appears to request the addition of a new 
product to the competitive product list. Docket No. MC2010-28 is 
established to consider this as part of the filing.
    The Postal Service contemporaneously filed copies of the contracts 
related to the proposed competitive product classification pursuant to 
39 U.S.C. 3632(b)(3) and 39 CFR 3015.5. The two contracts have been 
assigned Docket Nos. CP2010-67 and CP2010-68, respectively.
    The instant contracts. The Postal Service filed the instant 
contracts pursuant to 39 CFR 3015. The Postal Service states that the 
instant contracts are the immediate successors to those in Docket Nos. 
CP2009-46 and CP2009-47 that are scheduled to expire July 31, 2010. 
Notice at 2-3. The instant contracts are expected to begin August 1, 
2010, and expire on the day prior to the day of any changes in the 
published rates that affect the Qualifying Mail subject to the 
contracts. Id. at 3-4.\4\
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    \4\ The Postal Service has filed copies of contracts that have 
not been signed by Postal Service representatives or the mailer. The 
Commission directs the Postal Service to file executed copies of 
these contracts as soon as possible.
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    The Postal Service filed copies of the contracts, Governors' 
Decision with attachments, and supporting financial documentation under 
seal. Id. at 3.
    Additionally, in support of its Notice, the Postal Service filed 
the following five attachments:
    1. Attachment 1--a statement of supporting justification required 
by 39 CFR 3020.32;
    2. Attachments 2A and 2B--a redacted copy of each contract and 
applicable annexes;
    3. Attachments 3A and 3B--a certified statement required by 39 CFR 
3015.5(c)(2);
    4. Attachment 4--a redacted copy of Governors' Decision No. 08-8, 
which establishes prices and classifications for Global Plus Contracts, 
formulas for the prices, analysis and certification of the formulas and 
certification of the Governors' vote; and
    5. Attachment 5--an application for non-public treatment of 
materials to maintain the contract and supporting documents under seal.
    Functional equivalence. The Postal Service asserts that the instant 
contracts are functionally equivalent both to one another and to the 
precursor Global Plus 1 contracts in that they share similar cost and 
market characteristics. Id. at 4. It contends as a result the instant 
contracts should be grouped together as a single product. Id.
    The Postal Service addresses similarities between the instant 
contracts and their predecessors, e.g., that the customers are the same 
and the fundamental terms and conditions of the contracts remain 
essentially unchanged. Id. at 5. In addition, the Postal Service 
identifies what it characterizes as material changes in the contracts, 
e.g., term, price incentives, and minimum weight. The Postal Service 
asserts that the differences do not affect either the service provided 
or the structure of the contracts. Id. at 5-7.
    Baseline treatment. The Postal Service states that each of the 
instant contracts takes the place of its immediate predecessor which 
served as the baseline contracts for the Global Plus 1 Contracts 
product.\5\ It requests that the instant contracts be considered ``the 
new 'baseline' agreements for consideration of future such agreements 
functional equivalency.'' Id. at 9.
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    \5\ See Docket No. CP2009-46, Order Concerning Filing a 
Functionally Equivalent Global Plus 1 Contract Negotiated Service 
Agreement, July 31, 2009 at 7; see also Docket No. CP2009-47, Order 
Concerning Filing a Functionally Equivalent Global Plus 1 Contract 
Negotiated Service Agreement, August 3, 2009, at 7.
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    Filing under part 3020. In support of its filing, the Postal 
Service submitted, as Attachment 1, a Statement of Supporting 
Justification. The Postal Service asserts that analysis under 39

[[Page 43582]]

U.S.C. 3642(b) is unnecessary here because of the Commission findings 
in Order No. 43 that Negotiated Service Agreements for outbound 
International Mail are classified as competitive. Further, it asserts 
that the instant MC docket (MC2010-26) is merely a technicality ``and 
does not involve a substantively new product requiring fresh review.'' 
Id. at 8.
    The Postal Service contends that its filings demonstrate that the 
instant contracts comply with the requirements of 39 U.S.C. 3633, fit 
within the Mail Classification Schedule language for Global Plus 1 
Contracts and are functionally equivalent to each other. Id. at 9. It 
urges the Commission to add Global Plus 1A Contracts to the competitive 
product list. Id.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-26, CP2010-67 and 
CP2010-68 for 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 July 26, 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 these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-26, CP2010-67 and 
CP2010-68 for consideration of matters raised by the Postal Service's 
Request.
    2. Comments by interested persons in these proceedings are due no 
later than July 26, 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. 2010-18163 Filed 7-23-10; 8:45 am]
BILLING CODE 7710-FW-S