[Federal Register Volume 77, Number 5 (Monday, January 9, 2012)]
[Notices]
[Pages 1089-1090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-145]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2012-9; Order No. 1096]


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 Direct Contracts 1 contract to the competitive 
product list. This notice addresses procedural steps associated with 
the filing.

DATES: Comments are due: January 10, 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. Background
II. Notice of Filing
III. Ordering Paragraphs

I. Background

    On December 29, 2011, the Postal Service filed a notice announcing 
its intent to enter into an additional Global Direct Contracts 1 
agreement (Agreement).\1\ Global Direct Contracts provide a rate for 
mail acceptance within the United States, transportation to a receiving 
country of mail that bears the destination country's indicia, and 
payment by the Postal Service of the appropriate settlement charges to 
the receiving country.\2\ The Postal Service believes that the instant 
Agreement should be included within the Global Direct Contracts 1 
product because it is functionally equivalent to the Global Direct 
Contracts 1 agreement in Docket Nos. MC2010-17 and CP2010-18. Notice at 
2.
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    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Direct Contracts 1 Negotiated Service 
Agreement, December 29, 2011 (Notice).
    \2\ Decision of the Governors of the United States Postal 
Service on the Establishment of Prices and Classifications for 
Global Direct, Global Bulk Economy, and Global Plus Contracts, 
Docket Nos. MC2008-7, CP2008-16 and CP2008-17, issued July 16, 2008 
(Governors' Decision No. 08-10). The Commission revised the Mail 
Classification Schedule language proposed in Governors' Decision No. 
08-10 to reflect the actual payment practice under typical Global 
Direct Contracts. See Docket Nos. MC2009-9, CP2009-10 and CP2009-11, 
Order Concerning Global Direct Contracts Negotiated Service 
Agreements, December 19, 2008, at 9 (Order No. 153).
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    The instant Agreement. The Postal Service filed the instant 
Agreement under 39 CFR 3015.5. Id. In addition, the Postal Service 
contends that the Agreement is consistent with Order No. 386.\3\ The 
Postal Service states that the instant Agreement succeeds the Global 
Direct Contract in Docket No. CP2011-52, which is scheduled to expire 
January 15, 2012. Id. at 2-3. The term of the instant Agreement begins 
on January 16, 2011 and ends in January 2013 on the day before Canada 
Post Corporation implements price changes for its domestic Admail. Id. 
at 3, Attachment 1 at 7. If prices for Admail do not change during 
January 2013, then the instant Agreement is scheduled to expire January 
31, 2013. Id.
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    \3\ See Docket Nos. MC2010-17 and CP2010-18, Order Concerning 
Filing of Functionally Equivalent Global Direct Contracts 1 
Negotiated Service Agreement, January 11, 2010 (Order No. 386).
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    To support its Notice, the Postal Service filed four attachments as 
follows:
     Attachment 1--a redacted copy of the contract;
     Attachment 2--a certified statement required by 39 CFR 
3015.5(c)(2);
     Attachment 3--a redacted copy of Governors' Decision No. 
08-10, which establishes prices and classifications for

[[Page 1090]]

Global Direct, Global Bulk Economy, and Global Plus Contracts; and
     Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the contract and supporting 
documents under seal.
    The Postal Service states that the instant Agreement fits within 
the Mail Classification Schedule language for Global Direct Contracts 
included in Governors' Decision No. 08-10, with the modification 
proposed by the Commission to reflect the actual payment practice under 
these types of agreements. Id. at 2 (citing Order No. 153 at 9).
    The Notice advances reasons why the instant Agreement is 
functionally equivalent to the previous Global Direct Contracts 1 
agreement in Docket Nos. MC2010-17 and CP2010-18. Id. at 3. Aside from 
cosmetic or customer-specific updates, the Postal Service contends that 
the only differences are that the instant Agreement (1) concerns Global 
Direct service used with Admail to Canada; (2) contains more detailed 
procedures relating to penalties for mail that does not comply with 
applicable regulations; (3) addresses actual and potential changes in 
pricing; and (4) revises minimum commitments and annexes. Id. at 3-4. 
Despite these differences, the Postal Service contends that the instant 
contract is functionally equivalent to the Global Direct Contracts 1 
agreement filed previously because the core terms and conditions remain 
the same. Id. at 4.
    The Postal Service asserts that ``the cost and market 
characteristics of this agreement are substantially similar to those of 
prior Global Direct contracts'' and that the Agreement complies with 
the requirements of 39 U.S.C. 3633. Id. It requests that the Commission 
include this Agreement within the Global Direct Contracts 1 product. 
Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2012-9 to consider matters 
related to the contract identified in the Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632 or 
3633 and 39 CFR part 3015. Comments are due no later than January 10, 
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 the captioned filings.

III. Ordering Paragraphs

It is Ordered

    1. The Commission establishes Docket No. CP2012-9 to consider 
matters raised by the Postal Service's Notice.
    2. Comments by interested persons in these proceedings are due no 
later than January 10, 2012.
    3. Pursuant to 39 U.S.C. 505, Natalie Rea Ward 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. 2012-145 Filed 1-6-12; 8:45 am]
BILLING CODE 7710-FW-P