[Federal Register Volume 77, Number 18 (Friday, January 27, 2012)]
[Notices]
[Pages 4376-4377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1688]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2012-7 and CP2012-15; Order No. 1163]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Priority Mail Contract 38 to the competitive product 
list. This notice addresses procedural steps associated with the 
filing.

DATES: Comments are due: January 31, 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: 

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

[[Page 4377]]

associated supporting information to add Priority Mail Contract 38 to 
the competitive product list.\1\ Priority mail 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 38 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. MC2012-7.
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contact 38 to Competitive Product List and Notice of Filing 
(Under Seal) of Contract and Supporting Data, January 19, 2012 
(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).
---------------------------------------------------------------------------

    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. CP2012-15.
    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 
38 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 contract 
is scheduled to become effective on the day the Commission issues all 
necessary regulatory approval. Id. at 2. The contract will expire 3 
years from the effective date unless, among other things, either party 
terminates the agreement upon 30 days' written notice to the other 
party. Id. at 2. The Postal Service represents that the contract is 
consistent with 39 U.S.C. 3633(a). Id. Attachment D at 2.
    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. MC2012-7 and CP2012-15 to 
consider the Request pertaining to the proposed Priority Mail Contract 
38 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 31, 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. MC2012-7 and CP2012-15 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 31, 2012.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.

Shoshana M. Grove,
Secretary.
[FR Doc. 2012-1688 Filed 1-26-12; 8:45 am]
BILLING CODE 7710-FW-P