[Federal Register Volume 75, Number 147 (Monday, August 2, 2010)]
[Notices]
[Pages 45175-45176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18821]


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POSTAL REGULATORY COMMISSION

[Docket Nos. CP2010-73 and CP2010-74; Order No. 495]


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 two additional Global Expedited Package Services 3 
contracts to the competitive product list. This notice addresses 
procedural steps associated with the filing.

DATES:  Comments are due: July 29, 2010.

ADDRESSES:  Submit comments electronically via the Commission's

[[Page 45176]]

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 20, 2010, the Postal Service filed a notice announcing that 
it has entered into two additional Global Expedited Package Services 3 
(GEPS 3) contracts.\1\ The Postal Service believes the instant 
contracts are functionally equivalent to previously submitted GEPS 
contracts, and are supported by Governors' Decision No. 08-7, attached 
to the Notice and originally filed in Docket No. CP2008-4. Id. at 1-2, 
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 1-2. In Order No. 
290, the Commission approved the GEPS 2 product.\2\ In Docket Nos. 
MC2010-28 and CP2010-71, the Postal Service requested that the 
Commission add GEPS 3 to the competitive product list.\3\ Additionally, 
the Postal Service requested that the contract in that docket be 
considered the baseline contract for future functional equivalence 
analyses of the GEPS 3 product.
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    \1\ Notice of United States Postal Service Filing of Two 
Functionally Equivalent Global Expedited Package Services 3 
Negotiated Service Agreements and Application for Non-Public 
Treatment of Materials Filed Under Seal, July 20, 2010 (Notice).
    \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).
    \3\ See Docket Nos. MC2010-28 and CP2010-71, 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.
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    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 3. The Postal Service relates that one of the 
instant contracts is for the same mailer as in Docket No. CP2009-51. It 
states that the mailer's current contract ends August 8, 2010, and it 
expects the new contract to begin August 9, 2010.
    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 contract;
     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 3 contracts fit 
within the Mail Classification Schedule language for GEPS. The Postal 
Service identifies customer-specific information and general contract 
terms that distinguish the instant contracts from the baseline GEPS 3 
agreement all of which are highlighted in the Notice. Id. at 5. 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 baseline contract for GEPS 3 and share 
the same cost and market characteristics as the previously filed GEPS 
contracts. Id. at 4. It states that in spite of differences including 
updates and volume or postage commitments of customers, the changes do 
not alter the contracts' functional equivalency. Id. at 5. The Postal 
Service asserts that ``[b]ecause the agreements incorporate the same 
cost attributes and methodology, the relevant characteristics of these 
two GEPS contracts are similar, if not the same, as the relevant 
characteristics of previously filed contracts.'' Id.
    The Postal Service also contends that its filings demonstrate that 
each of the new GEPS 3 contracts complies with the requirements of 39 
U.S.C. 3633. It requests that the contracts be included within the GEPS 
3 product. Id. at 6.

II. Notice of Filing

    The Commission establishes Docket Nos. CP2010-73 and CP2010-74 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 July 29, 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. CP2010-73 and CP2010-74 
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 29, 2010.
    3. 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.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove
Secretary.
[FR Doc. 2010-18821 Filed 7-30-10; 8:45 am]
BILLING CODE 7710-FW-S