[Federal Register Volume 77, Number 206 (Wednesday, October 24, 2012)]
[Notices]
[Pages 65024-65025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26213]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2013-5 and CP2013-5; Order No. 1505]


New Postal Product and Related Negotiated Service Agreement

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Priority Mail Contract & First-Class Package Service 
Contract 1 to the competitive product list, including a related 
contract. This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: October 25, 2012.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

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. Supplemental Information
IV. 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 & First-Class Package Service Contract 
1 to the competitive

[[Page 65025]]

product list.\1\ The Postal Service asserts that Priority Mail & First-
Class Package Service 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 Request has been assigned Docket No. MC2013-5.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail & First-Class Package Service Contract 1 to Competitive Product 
List and Notice of Filing (Under Seal) of Unredacted Governors' 
Decision, Contract, and Supporting Data, October 17, 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. CP2013-5.
    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 first business day after the 
date that the Commission issues all regulatory approvals. Id. at 3. 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. 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 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. MC2013-5 and CP2013-5 to 
consider the Request pertaining to the proposed Priority Mail & First-
Class Package Service Contract 1 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 25, 2012. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints James F. Callow to serve as Public 
Representative in these dockets.

III. Supplemental Information

    Contract Term I.E. indicates that the customer can request the use 
of Package Intercept service at a negotiated rate. The Postal Service's 
workpapers do not take into account the customer's ability to use 
Package Intercept service for a negotiated rate in demonstrating that 
the contract will cover its attributable cost.
    Please provide revised supporting workpapers that demonstrate that 
the contract as a whole will cover its attributable cost taking into 
account the customer's ability to use Package Intercept service at a 
negotiated rate. Response to the supplemental information request is 
due no later than October 24, 2012.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-5 and CP2013-5 to 
consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, James F. Callow 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 25, 2012.
    4. Response to the supplemental information request is due no later 
than October 24, 2012.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2012-26213 Filed 10-23-12; 8:45 am]
BILLING CODE 7710-FW-P