[Federal Register Volume 77, Number 2 (Wednesday, January 4, 2012)]
[Notices]
[Pages 305-306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33712]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2012-4 and CP2012-8; Order No. 1073]


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 a Global Expedited Package Services contract to the 
competitive product list. This notice addresses procedural steps 
associated with the filing.

DATES: Comments are due: January 6, 2012.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section as the source for case-related information for advice 
on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at (202) 789-6820 (case-related information) or [email protected] 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION: 

Table of Contents

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

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., and 
Order No. 630, the Postal Service filed a formal request and associated 
supporting information to add Global Expedited Package Services-Non-
Published Rates 3 (GEPS-NPR 3) to the competitive product list.\1\ The 
Postal

[[Page 306]]

Service states that the addition is necessary due to changes in the 
non-discounted published postage for Express Mail International (EMI), 
Priority Mail International (PMI), and Global Express Guaranteed (GXG), 
as well as a new GEPS-NPR 3 model contract and accompanying financial 
model that differ from the GEPS-NPR 2 model contract and financial 
model. Request at 2-3. The Request has been assigned Docket No. MC2012-
4.
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    \1\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 3 (GEPS-NPR 3) to 
the Competitive Products List and Notice of Filing GEPS-NPR 3 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, December 20, 2011 (Request).
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    The Postal Service contemporaneously filed a redacted version of 
the GEPS-NPR 3 model 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. CP2012-8.
    Request. To support its Request, the Postal Service filed six 
attachments as follows:
     Attachment 1--an application for non-public treatment of 
materials filed under seal;
     Attachment 2A--a redacted version of Governors' Decision 
No. 11-6;
     Attachment 2B--a revised version of MCS 2510.8 GEPS-NPR;
     Attachment 2C--a redacted version of Management's Analysis 
of the Prices and Methodology for Determining Prices For Negotiated 
Service Agreements Under Global Expedited Package Services--Non-
Published Rates 3;
     Attachment 2D--a list of Maximum and Minimum Prices for 
EMI, PMI, and GXG under GEPS-NPR 3 Contracts;
     Attachment 2E--a certified statement concerning prices for 
applicable negotiated service agreements under GEPS-NPR 3 rates, as 
required by 39 CFR 3015(c)(2);
     Attachment 3--a Statement of Supporting Justification 
similar to the Statement of Supporting Justification used to support 
the classification of GEPS-NPR 1, and as required by 39 CFR 3020.32;
     Attachment 4--a redacted version of the GEPS-NPR 3 model 
contract.
    In the Statement of Supporting Justification, Frank Cebello, 
Executive Director, Global Business Management, asserts that the 
product is designed to increase the efficiency of the Postal Service's 
process, as well as enhance its ability to compete in the marketplace. 
Id., Attachment 3 at 1. Mr. Cebello states that the product is designed 
to enable the Postal Service's Global Business sales force to rapidly 
establish, based on various factors, whether a GEPS-type agreement will 
be profitable enough to justify establishing an incentive-based mailing 
plan with the customer for EMI, PMI, and GXG if the customer uses 
Global Shipping Software. Id., Attachment 3 at 2. In order to 
accomplish this, the product revises the product designs for GEPS-NPR 1 
and GEPS-NPR 2 to include actual rates that will cover their costs, and 
will eliminate the need for each customer agreement to be added to the 
competitive products list individually. Id. Attachment 3 at 2, 5. Mr. 
Cebello contends that the product is not subsidized by market dominant 
products, it covers costs attributable to it, and it does not cause 
competitive products as a whole to fail to make the appropriate 
contribution to institutional costs. Id. The Postal Service asserts 
that the model contract is supported by Governors' Decision No. 11-6, 
which authorizes management to prepare any necessary product 
description of non-published competitive services, including text for 
inclusion in the MCS, and to present the matter to the Commission for 
review. Id. at 3.
    Related contract. The Postal Service included a redacted version of 
the related model contract with the Request. Id. Attachment 4. The 
Postal Service will notify the customer of the effective date no later 
than 30 days after receiving the signed agreement from the mailer. Id, 
Attachment 4 at 6. The contract will expire 1 year from the effective 
date unless terminated sooner. Id. The Postal Service represents that 
the contract is consistent with 39 U.S.C. 3633(a). Id. Attachment 4.
    The Postal Service filed much of the supporting materials, 
including the related model contract, under seal. Id. Attachment 1. It 
maintains that the redacted portions of the materials should remain 
confidential as sensitive business information. Id. at 4. This 
information includes sensitive commercial information concerning the 
incentive discounts and their formulation, applicable cost-coverage, 
non-published rates, as well as some customer-identifying information. 
Id. The Postal Service asks the Commission to protect customer-
identifying information from public disclosure for ten years after the 
date of filing with the Commission, unless an order is entered to 
extend the duration of that status. Id. at 9.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2012-4 and CP2012-8 to 
consider the Request pertaining to the proposed Priority Mail Contract 
37 product and the related model 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. MC2012-4 and CP2012-8 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. 2011-33712 Filed 1-3-12; 8:45 am]
BILLING CODE 7710-FW-P