[Federal Register Volume 78, Number 11 (Wednesday, January 16, 2013)]
[Notices]
[Pages 3477-3478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00844]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2013-38; Order No. 1619]


International Mail Contracts

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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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 23, 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 10, 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 previously approved baseline agreements. Id. at 2.
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    \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 10, 2013 (Notice). The Notice was filed in 
accordance with 39 CFR 3015.5. Id. at 1.
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    Background. 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 intended to be the 
immediate successor instrument to the agreement in Docket No. CP2012-
10. Id. at 3.
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    \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.
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    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.

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 
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 6.
    The Postal Service states that prices may differ, depending on when 
an agreement is signed, due to updated costing information. Id. 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. at 6.
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    \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.
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    Effective date; term. The Agreement includes a scheduled effective 
date of January 14, 2013, however, given its filing date (January 10, 
2013) and advance notice requirements,\4\ the Agreement can take effect 
no sooner than January 25, 2013, assuming regulatory approval, creating 
a gap in coverage.\5\
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    \4\ Pursuant to 39 CFR 3015.5.
    \5\ The parties to the agreement in Docket No. CP2012-10, the 
same as to the instant Agreement, amended that agreement to extend 
its termination date to January 31, 2013. By separate motion, the 
Postal Service sought approval of that extension. See Motion of the 
United States Postal Service for Temporary Relief and Notice of the 
United States Postal Service of Filing Modification to Global Plus 
2C Negotiated Service Agreement, January 9, 2013 (Motion). By Order 
No. 1618, issued January 11, 2013, the Motion was granted.

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[[Page 3478]]

    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, January 31, 
2014. Id.
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    \6\ The products are domestic Lettermail, Incentive Lettermail, 
Admail, and/or Publications Mail products. Notice, Attachment 1 at 
10.
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III. Commission Action

    The Commission establishes Docket No. CP2013-38 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 sections 3632, 3633, and 3642. Comments are 
due no later than January 23, 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 Curtis E. Kidd 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. CP2013-38 for 
consideration of matters raised in the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, the Commission designates Curtis E. 
Kidd 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 23, 2013.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2013-00844 Filed 1-15-13; 8:45 am]
BILLING CODE 7710-FW-P