[Federal Register Volume 77, Number 2 (Wednesday, January 4, 2012)]
[Notices]
[Pages 304-305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33681]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2012-3 and CP2012-7; Order No. 1072]


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 Priority Mail Contract 37 to the competitive product 
list. This notice addresses procedural steps associated with this 
filing.

DATES: Comments are due: January 6, 2012.

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

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the 
Postal Service filed a formal request and associated supporting 
information to add Priority Mail Contract 37 to the competitive product 
list.\1\ Priority mail

[[Page 305]]

contracts enable the Postal Service to provide Priority Mail service to 
an individual customer at customized rates.\2\ The Postal Service 
asserts that Priority Mail Contract 37 is a competitive product ``not 
of general applicability'' within the meaning of 39 U.S.C. 3632(b)(3). 
Request at 1. The Request has been assigned Docket No. MC2012-3.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contact 36 to Competitive Product List and Notice of Filing 
(Under Seal) of Contract and Supporting Data, December 20, 2011 
(Request).
    \2\ Decision of the Governors of the United States Postal 
Service on Establishment of Rates and Classes Not of General 
Applicability for Priority Mail Contract Group, Docket No. MC2009-
25, issued April 27, 2009, at 1 (Governors' Decision No. 09-6).
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    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39 
CFR 3015.5. Id. Attachment B. The instant contract has been assigned 
Docket No. CP2012-7.
    Request. To support its Request, the Postal Service filed six 
attachments as follows:
     Attachment A--a redacted copy of Governors' Decision No. 
09-6, authorizing certain Priority Mail contracts, and a certification 
of the Governors' vote;
     Attachment B--a redacted copy of the contract;
     Attachment C--proposed changes to the Mail Classification 
Schedule competitive product list that would add Priority Mail Contract 
37 under Domestic Negotiated Service Agreements;
     Attachment D--a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
     Attachment E--a certification of compliance with 39 U.S.C. 
3633(a); and
     Attachment F--an application for non-public treatment of 
materials to maintain redacted portions of the contract, customer-
identifying information, and related financial information under seal.
    In the Statement of Supporting Justification, Dennis R. Nicoski, 
Manager, Field Sales Strategy and Contracts, asserts that the contract 
will cover its attributable costs, make a positive contribution to 
covering institutional costs, and increase contribution toward the 
requisite 5.5 percent of the Postal Service's total institutional 
costs. Id. Attachment D at 1. Mr. Nicoski contends that there will be 
no issue of market dominant products subsidizing competitive products 
as a result of this contract. Id.
    Related contract. The Postal Service included a redacted version of 
the related contract with the Request. Id. Attachment B. The Postal 
Service will notify the customer of the effective date within 15 
business days of receiving the signed contract from the customer. Id. 
at 2. The contract will expire 1 year from the effective date unless, 
among other things, either party terminates the agreement upon 30 days' 
written notice to the other party. Id. at 4. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a). Id. 
Attachment D.
    The Postal Service filed much of the supporting materials, 
including the related contract, under seal. Id. Attachment F. It 
maintains that the redacted portions of the contract, customer-
identifying information, and related financial information, should 
remain confidential. Id. at 2-3. This information includes the price 
structure, underlying costs and assumptions, pricing formulas, 
information relevant to the customer's mailing profile, and cost 
coverage projections. Id. The Postal Service asks the Commission to 
protect customer-identifying information from public disclosure 
indefinitely. Id. at 7.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2012-3 and CP2012-7 to 
consider the Request pertaining to the proposed Priority Mail Contract 
37 product and the related contract, respectively.
    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 3015.5, and 39 CFR 
part 3020, subpart B. Comments are due no later than January 6, 2012. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Natalie Rea Ward to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

It is Ordered:

    1. The Commission establishes Docket Nos. MC2012-3 and CP2012-7 to 
consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Natalie Rea Ward is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than January 6, 2012.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-33681 Filed 1-3-12; 8:45 am]
BILLING CODE 7710-FW-P