[Federal Register Volume 75, Number 143 (Tuesday, July 27, 2010)]
[Notices]
[Pages 44029-44030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18314]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-28 and CP2010-71; Order No. 492]


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 Expedited Package Services 3 to the competitive 
product list. The Postal Service has also filed a related contract. 
This notice addresses procedural steps associated with the filing.

DATES:  Comments are due: July 27, 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

    On July 14, 2010, the Postal Service filed a notice announcing that 
it has entered into an additional Global Expedited Package Services 
(GEPS) contract and seeks to add it as Global Expedited Package 
Services 3 to the competitive product list.\1\ The Postal Service 
believes the instant contract is functionally equivalent to previously 
submitted GEPS 2 contracts, and is supported by Governors' Decision No. 
08-7, attached to the Notice and originally filed in Docket No. CP2008-
4. Id. at 1, Attachment 4. 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\
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    \1\ Notice and Request of the United States Postal Service to 
Add Global Expedited Package Services 3 to the competitive products 
list and Notice of Filing of Functionally Equivalent Negotiated 
Service Agreement and Application for Non-Public Treatment of 
Materials Filed Under Seal, July 14, 2010 (Notice); see also Notice 
of Errata Concerning Electronic Filing, July 15, 2010.
    \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).
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    The Postal Service seeks to add the GEPS 3 product to the 
competitive product list. Id. at 2. Although the filing is styled as a 
``request,'' it does not appear to have been submitted pursuant to 39 
CFR 3020.30 et seq. Docket No. MC2010-28 is established to consider 
this aspect of the Postal Service's filing. Docket No. CP2010-71 is 
established to consider the instant contract.
    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 Order No. 86. The term of the 
contract is 1 year from the date the Postal Service notifies the 
customer that all necessary regulatory approvals have been received. 
The Postal Service relates that the instant contract is for the same 
mailer as in Docket No. CP2009-50. It states the mailer's current 
contract ends July 31, 2010, and it expects the new contract to begin 
August 1, 2010.
    In support of its Notice, the Postal Service filed five attachments 
as follows:
    1. Attachment 1-statement of supporting justification required by 
39 CFR 3020.32;

[[Page 44030]]

    2. Attachment 2-a redacted copy of the contract a certified 
statement required by 39 CFR 3015.5(c)(2);
    3. Attachment 3-a certified statement required by 39 CFR 
3015.5(c)(2);
    4. Attachment 4-a redacted copy of Governors' Decision No. 08-07, 
which establishes prices and classifications for GEPS contracts, a 
description of applicable GEPS contracts, formulas for prices, an 
analysis and certification of the Governors' vote; and
    5. Attachment 5-an application for non-public treatment of 
materials to maintain redacted portions of the contract and supporting 
documents under seal.
    Functional equivalence. The Notice advances reasons why the instant 
GEPS 3 contract fits within the Mail Classification Schedule language 
for GEPS contracts. The Postal Service contends that instant contract 
is functionally equivalent to previous GEPS 2 contracts and should be 
added to the competitive product list as GEPS 3 to replace GEPS 2 
contracts as they expire. Id. at 4. It asserts that the instant 
contract shares the same cost and market characteristics as the 
previously filed GEPS 2 contracts and the same customers, small or 
medium-sized businesses, that mail products directly to foreign 
destinations using Express Mail International, Priority Mail 
International, or both. Id.
    The Postal Service identifies customer-specific information, 
general contract terms and other differences that distinguish the 
instant contract from the baseline GEPS 2 agreement, all of which are 
highlighted in the Notice. Id. at 5-8.
    The Postal Service contends that in spite of these differences the 
instant contract is functionally equivalent to previously filed GEPS 
contracts and fits within the requirements of the Governors Decision 
for GEPS agreements. Id. at 5. See also id. (``[T]he relevant 
characteristics are similar, if not the same, for this GEPS 3 contract 
and the previously filed contracts.'').
    The Postal Service also contends that its filings demonstrate that 
the new GEPS 3 contract complies with the requirements of 39 U.S.C. 
3633, is functionally equivalent to other GEPS contracts and should be 
considered the baseline for future GEPS agreements. It requests 
approval for the contract to be included within the GEPS 3 product. Id. 
at 8.
    Baseline treatment. The Postal Service states that the instant 
contract takes the place of its immediate predecessor which served as 
the baseline contract for the GEPS 2 product. It requests that the 
instant contract be considered the new `baseline' agreement for 
consideration of future GEPS 3 agreements' functional equivalency.'' 
Id. at 8.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-28 and CP2010-71 for 
consideration of matters raised in the Postal Service's Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is 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 27, 2010. The public portions of these 
filings can be accessed via the Commission's Website (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in the captioned filings.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-28 and CP2010-71 
for consideration of matters raised by the Postal Service's Notice.
    2. Comments by interested persons in these proceedings are due no 
later than July 27, 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. 2010-18314 Filed 7-26-10; 8:45 am]
BILLING CODE 7710-FW-S