[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Notices]
[Pages 79053-79054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31657]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2011-7, CP2011-39 and CP2011-40; Order No. 607]


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 Plus 1B Contracts to the competitive product 
list. This notice addresses procedural steps associated with this 
filing.

DATES: Comments are due: December 21, 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 FOR 
FURTHER INFORMATION CONTACT 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

    Pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the Postal 
Service seeks to add Global Plus 1B as a new product, to the 
competitive product list.\1\ The Request has been assigned Docket No. 
MC2011-7. In addition, the Postal Service filed notice, pursuant to 39 
CFR 3015.5, announcing that it has entered into two Global Plus 1B

[[Page 79054]]

contracts. The Postal Service states that the instant contracts are 
functionally equivalent with one another and to previously submitted 
Global Plus 1A 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\ The two contracts have been assigned Docket 
Nos. CP2011-39 and CP2011-40, respectively.
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    \1\ Request of the United States Postal Service to Add Global 
Plus 1B to the Competitive Products List and Notice of Filing Two 
Functionally Equivalent Global Plus 1B Contracts Negotiated Service 
Agreements and Application for Non-Public Treatment of Materials 
Filed Under Seal, December 9, 2010 (Request).
    \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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    The instant contracts. The Postal Service states that the instant 
contracts are the immediate successors to the Global Plus 1A contracts 
in Docket Nos. CP2010-67 and CP2010-68 that are scheduled to expire at 
11:59 p.m. on the day prior to the date of any change in the published 
rates that affect the qualifying mail (as defined in the contract) in 
the agreement. The change in published rates is expected to occur for 
Express Mail International and Priority Mail International on January 
2, 2011. Request at 4. The instant contracts are expected to begin 
January 2, 2011, and expire at 11:59 p.m. on the day prior to the day 
of any change in the published rates that affect the qualifying mail 
subject to the contracts in the month of January 2012.\4\ Id. at 4-5.
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    \4\ The Postal Service states that if the date of the change in 
published prices for qualifying mail does not occur before January 
31, 2012, the contracts' termination date is January 31, 2012. Id. 
at 5.
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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, the Postal Service filed the following five 
attachments:
     Attachment 1--a statement of supporting justification 
required by 39 CFR 3020.32;
     Attachments 2A and 2B--a redacted copy of each contract 
and applicable annexes;
     Attachments 3A and 3B--certified statements required by 39 
CFR 3015.5(c)(2);
     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;
     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 to one another and to the 
precursor Global Plus 1 contracts in that they share similar cost and 
market characteristics. Id. at 5. It contends that 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 6. It identifies minor changes in 
contract terms that distinguish the instant contracts from each other, 
e.g., customer name, postage prices, penalties, identification of prior 
agreements, and preservation after termination provisions. The Postal 
Service asserts that the differences do not affect either the service 
provided or the structure of the contracts. It also states that the 
differences do not affect functional equivalency. Id. at 5-6.
    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 1A Contracts 
product.\5\ It requests that the instant contracts be considered ``the 
new `baseline' contracts for future functional equivalency analyses 
concerning the Global Plus 1 product.'' (Footnote omitted.) Request at 
4.
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    \5\ See Docket Nos. MC2010-26, CP2010-67 and CP2010-68, Order 
Approving Functionally Equivalent Global Plus 1A Contracts 
Negotiated Service Agreement, July 30, 2010.
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    Filing under part 3020. In support of its filing, the Postal 
Service submitted a statement of Supporting Justification and a copy of 
Governors' Decision No. 08-8 as Attachments 1 and 4, respectively. The 
Postal Service asserts that analysis under 39 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 contends that the classification 
requirements of section 3642 have been met and that there is, ``no 
further need to ponder whether Global Plus 1B contracts are market 
dominant or covered within the postal monopoly.'' Id. at 7.
    The Postal Service states 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 
Contracts and are functionally equivalent to each other. Id. at 8. It 
urges the Commission to add Global Plus 1B Contracts to the competitive 
product list and to establish the instant contracts as the baseline 
contracts for the Global Plus 1B product. Id.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2011-7, CP2011-39 and 
CP2011-40 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 
part 3020 subpart B. Comments are due no later than December 21, 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. MC2011-7, CP2011-39 and 
CP2010-40 for consideration of matters raised by the Postal Service's 
Request.
    2. Comments by interested persons in these proceedings are due no 
later than December 21, 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. 2010-31657 Filed 12-16-10; 8:45 am]
BILLING CODE 7710-FW-P