[Federal Register Volume 78, Number 11 (Wednesday, January 16, 2013)]
[Notices]
[Pages 3478-3479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00719]


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

POSTAL REGULATORY COMMISSION

[Docket No. CP2013-36; Order No. 1616]


International Mail Contracts

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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

SUMMARY: The Commission is noticing a recently-filed Postal Service 
request concerning an additional Global Plus 2C contract. This document 
invites public comments on the request and addresses several related 
procedural steps.

DATES: Comments are due: January 18, 2013.

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. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    Notice of filing. On January 8, 2013, the Postal Service filed a 
notice announcing that it is entering into an additional Global Plus 2C 
contract (Agreement).\1\ The Postal Service seeks to have the Agreement 
included within the Global Plus 2C product on the grounds of functional 
equivalence to a previously approved baseline agreement. Id. at 2.
---------------------------------------------------------------------------

    \1\ Notice of the United States Postal Service of Filing a 
Functionally Equivalent Global Plus 2C Contract Negotiated Service 
Agreement and Application for Non-Public Treatment of Materials 
Filed Under Seal, January 8, 2013 (Notice). The Notice was filed in 
accordance with 39 CFR 3015.5. Id. at 1.
---------------------------------------------------------------------------

    Background. Customers for Global Plus 2C contracts are Postal 
Qualified Wholesalers (PQWs) and other large businesses that offer 
mailing services to end users for shipping articles via Global Direct 
and/or International Business Reply Service. Id. at 6. The Commission 
added Global Plus 2 to the competitive product list, based on 
Governors' Decision No. 08-10, by operation of Order No. 112. Id. at 1. 
It later approved the addition of Global Plus 2C contracts to the 
competitive product list as a result of Docket No. MC2012-5.\2\ The 
Commission designated the contracts filed in companion Docket Nos. 
CP2012-10 and CP2012-11 as the baseline agreements for purposes of 
establishing the functional equivalency of other agreements proposed 
for inclusion with the Global Plus 2C product. Notice at 2. The 
Agreement that is the subject of this filing is the immediate successor 
instrument to the agreement in Docket No. CP2012-11. Id. at 4.
---------------------------------------------------------------------------

    \2\ See Docket Nos. MC2012-5, CP2012-10, and CP2012-11, Order 
No. 1135, Order Adding Global Plus 2C to the Competitive Product 
List and Approving Functionally Equivalent Global Plus 2C 
Agreements, January 13, 2012.
---------------------------------------------------------------------------

II. Contents of Filing

    The filing includes the Notice, along with the following 
attachments:
     Attachment 1--a redacted copy of the Agreement;
     Attachment 2--a redacted copy of the certification 
required under 39 CFR 3015.5(c)(2);
     Attachment 3--a redacted copy of Governors' Decision No. 
11-6; and
     Attachment 4--an application for non-public treatment of 
material filed under seal.
    The material filed under seal consists of unredacted copies of the 
Agreement and supporting financial documents. Id. at 2. The Postal 
Service filed redacted versions of the sealed financial documents in 
public Excel spreadsheets. Id. at 3.
    Functional equivalency. The Postal Service asserts that the instant 
Agreement and the baseline agreements are functionally equivalent 
because they share similar cost and market characteristics. Id. at 5. 
It notes that the pricing formula and classification established in 
Governors' Decision No. 08-10 ensure that each Global Plus 2C contract 
meets the criteria of 39 U.S.C. 3633 and related regulations. Id. The 
Postal Service also indicates that the pricing formula relied on for 
these Global Plus 2C contracts is included in Governors' Decision No. 
11-6. Id. The Postal Service further asserts that the functional terms 
of the two agreements are the same and the benefits are comparable. Id. 
at 5-6.
    The Postal Service states that prices may differ, depending on when 
an agreement is signed, due to updated costing information. Id. at 6. 
It also identifies other differences in contractual terms, but asserts 
that the differences do not affect either the fundamental service being 
offered or the fundamental structure of the Agreement.\3\ Id.
---------------------------------------------------------------------------

    \3\ The list includes, among other things, the non-inclusion of 
a particular service, the addition and revision of articles, and 
related renumbering of articles. See id. at 7-8.
---------------------------------------------------------------------------

    Effective date; term. The Agreement, as filed, includes a stated 
effective date of January 14, 2013; however, given its filing date 
(January 8, 2013) and advance notice requirements, the Agreement can 
take effect no sooner than January 23, 2013, assuming regulatory 
approval.\4\ By operation of

[[Page 3479]]

Order No. 1612, the Commission, at the Postal Service's request, 
extended the January 13, 2013 termination date of the original 
agreement to coincide with approval of the instant Agreement.\5\ The 
extension avoids the gap in coverage that otherwise would occur.
---------------------------------------------------------------------------

    \4\ This allows the Postal Service to satisfy the 15 days' 
advance notice requirement in 39 CFR 3015.5.
    \5\ See Order No. 1612, Order Granting Motion for Temporary 
Relief, January 8, 2013.
---------------------------------------------------------------------------

    The Agreement is expected to be in effect for approximately 1 year. 
Termination is linked to either the date prior to the date in January 
2014 that Canada Post Corporation takes action on price changes for 
certain domestic products \6\ or, in the event of inaction, a date 
certain (January 31, 2014). Id.
---------------------------------------------------------------------------

    \6\ The products are domestic Lettermail, Incentive Lettermail, 
Admail, and/or Publications Mail products. Notice, Attachment 1 at 
10.
---------------------------------------------------------------------------

III. Commission Action

    The Commission establishes Docket No. CP2013-36 for consideration 
of matters raised in the Notice. Interested persons may submit comments 
on whether the Agreement is consistent with the requirements of 39 CFR 
3015.5 and the policies of 39 U.S.C. 3632, 3633, and 3642. Comments are 
due no later than January 18, 2013. The public portions of the Postal 
Service's filing can be accessed via the Commission's Web site at 
http://www.prc.gov. Information on how to obtain access to nonpublic 
material appears at 39 CFR 3007.40.
    The Commission appoints James F. Callow to represent the interests 
of the general public (Public Representative) in this case.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2013-36 for 
consideration of matters raised in the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, the Commission designates James F. 
Callow to serve as an officer of the Commission (Public Representative) 
to represent the interests of the general public in this proceeding.
    3. Comments are due no later than January 18, 2013.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-00719 Filed 1-15-13; 8:45 am]
BILLING CODE 7710-FW-P