[Federal Register Volume 77, Number 201 (Wednesday, October 17, 2012)]
[Notices]
[Pages 63899-63900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25431]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2013-2 and CP2013-2; Order No. 1493]


New Postal Product; Negotiated Service Agreement

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is establishing a docket to consider the Postal 
Service's request to add Priority Mail Contract 44 to the competitive 
product list. This notice provides public notice of the Postal 
Service's filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: October 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 the FOR 
FURTHER INFORMATION CONTACT portion of the preamble for advice on 
alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6824.

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., the 
Postal Service filed a formal request and associated supporting 
information to add Priority Mail Contract 44 to the competitive product 
list.\1\ The Postal Service asserts that Priority Mail Contract 44 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. MC2013-2.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 44 to Competitive Product List and Notice of Filing 
(Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, October 10, 2012 (Request).
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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. CP2013-2.
    Request. To support its Request, the Postal Service filed six 
attachments as follows:
     Attachment A--a redacted copy of Governors' Decision No. 
11-6, authorizing the new product;
     Attachment B--a redacted copy of the contract;
     Attachment C--proposed changes to the Mail Classification 
Schedule competitive product list with the addition underlined;
     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 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 following the date that the 
Commission issues all regulatory approvals. Id. at 2. The contract will 
expire 3 years from the effective date, unless, among other things, 
either party terminates the agreement with 30 days' written notice to 
the other party. Id. The Postal Service represents that the

[[Page 63900]]

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 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. MC2013-2 and CP2013-2 to 
consider the Request pertaining to the proposed Priority Mail Contract 
44 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 October 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 R. Ward to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-2 and CP2013-2 to 
consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Natalie R. 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 October 18, 2012.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2012-25431 Filed 10-16-12; 8:45 am]
BILLING CODE 7710-FW-P