[Federal Register Volume 77, Number 93 (Monday, May 14, 2012)]
[Notices]
[Pages 28408-28409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11581]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2012-16 and CP2012-23; Order No. 1335]


Product List Changes

AGENCY: Postal Regulatory Commission.

[[Page 28409]]


ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Parcel Select Contract 2 to the competitive product 
list. This notice addresses procedural steps associated with this 
filing.

DATES: Comments are due: May 18, 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 
at 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Introduction

    Pursuant to 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 Parcel Select Contract 1 to the competitive product list.\1\ The 
Commission notes there is already a Parcel Select Contract 1 on the 
competitive product list. See Docket Nos. MC2011-16 and CP2011-53. It 
is the Commission's intent to rename the proposed new product Parcel 
Select Contract 2. Participants may address the name of the new product 
in their comments.
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    \1\ Request of the United States Postal Service to Add Parcel 
Select Contract 1 to Competitive Product List and Notice of Filing 
(Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, May 7, 2012 (Request). The Request supersedes a 
similar filing submitted May 4, 2012. See Notice of the United 
States Postal Service of Filing Errata to Request and Notice, filed 
May 7, 2012.
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    The Postal Service asserts that Parcel Select Contract 1 is a 
competitive product ``not of general applicability'' within the meaning 
of 39 U.S.C. 3632(b)(3). Request at 1. The Postal Service states that 
the explanation and justification for this contract are provided by 
Governors' Decision No. 11-6, included as Attachment A to the 
Request.\2\ The Request has been assigned Docket No. MC2012-16.
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    \2\ Id. at 1; Decision of the Governors of the United States 
Postal Service on Establishment of Domestic Competitive Agreements, 
Outbound International Competitive Agreements, Inbound International 
Competitive Agreements, and Other Non-Published Competitive Rates, 
issued March 22, 2011 (Governors' Decision No. 11-6).
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    The Postal Service contemporaneously filed a contract related to 
the proposed new product. Id., Attachment B. The contract has been 
assigned Docket No. CP2012-23.
    Request. In support of its Request, the Postal Service filed six 
attachments as follows:
     Attachment A--a redacted copy of Governors' Decision No. 
11-6;
     Attachment B--a redacted copy of the contract;
     Attachment C--a proposed change in the Mail Classification 
Schedule competitive product list;
     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 and supporting 
documents under seal.
    In the Statement of Supporting Justification, Karen F. Key, 
Manager, Shipping Products, asserts that the service to be provided 
under the contract will cover its attributable costs, make a positive 
contribution to institutional costs, and increase contribution toward 
the requisite 5.5 percent of the Postal Service's total institutional 
costs. Id., Attachment D. Thus, Ms. Key contends there will be no issue 
of market dominant products subsidizing competitive products as a 
result of this contract. Id.
    Related contract. A redacted version of the specific Parcel Select 
Contract 2 is included with the Request. Id., Attachment B. The 
contract will become effective on the later of the day following the 
date on which the Commission issues all approvals on June 1, 2012. 
Request at 6. The contract will expire on May 31, 2019 unless, among 
other things, either party terminates the agreement for convenience 
upon 6 months' written notice to the other party. Id. 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 specific Parcel Select Contract 2, under seal. Id., 
Attachment F. It maintains that redacted portions of the contract, 
Governors' Decision No. 11-6, and related financial information should 
remain confidential. Id. at 2-3. This information includes the price 
structure and terms, expected profit, underlying costs and assumptions, 
cost coverage projections, and customer-related information. Id. at 3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2012-16 and CP2012-23 to 
consider the Request pertaining to the proposed Parcel Select Contract 
2 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 part 3015, and 39 CFR 
part 3020, subpart B. Comments are due no later than May 18, 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. MC2012-16 and CP2012-23 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Natalie Rea Ward is appointed to 
serve as an 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 May 18, 2012.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012-11581 Filed 5-11-12; 8:45 am]
BILLING CODE 7710-FW-P