[Federal Register Volume 78, Number 107 (Tuesday, June 4, 2013)]
[Notices]
[Pages 33451-33452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13078]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2013-51 and CP2013-64; Order No. 1733]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Global Reseller Expedited Package Contracts 2 Negotiated 
Service Agreements to the competitive product list. This notice informs 
the public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: June 4, 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

    On May 24, 2013, the Postal Service filed a formal request pursuant 
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Global Reseller 
Expedited Package (GREP) Contracts 2 to the competitive product 
list.\1\ The Postal Service contemporaneously filed a contract related 
to the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 
3015.5. On May 28, 2013, the Postal Service filed the certified 
statement and supporting financial information required by 39 CFR 
3015.5(c).\2\ For purposes of 39 CFR 3015.5(a), the Commission 
considers May 28, 2013 (the day the Postal Service submitted all 
information required under that section), to be the date of filing of 
the Request. In the future, the Postal Service should file all of its 
supporting information contemporaneously with its request.
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    \1\ Request of the United States Postal Service to Add Global 
Reseller Expedited Package Contracts 2 to the Competitive Products 
List and Notice of Filing a Global Reseller Expedited Package 2 
Negotiated Service Agreement and Application for Non-Public 
Treatment of Materials Filed Under Seal, May 24, 2013 (Request).
    \2\ Notice of the United States Postal Service of Filing 
Supplemental Materials, May 28, 2013 (Supplement).
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    Customers for GREP contracts are sales agents, or ``Resellers,'' 
who market Express Mail International, Priority Mail International, and 
First-Class Package International Service at discounted prices to 
mailers, particularly small and medium-size businesses. Request at 5. 
Governors' Decision No. 10-1 established prices and classifications 
``not of general applicability'' for the GREP Contracts 1 product, and 
the Commission added GREP Contracts 1 to the competitive product list 
by operation of Order No. 445 in Docket Nos. MC2010-21 and CP2010-36. 
Id. at 1-2. The Postal Service now seeks to establish a new baseline 
agreement for a product it proposes to designate as GREP Contracts 2. 
Id. at 2.
    The Postal Service asserts that Governors' Decision No. 11-6 
authorizes Postal Service management to prepare and present to the 
Commission product descriptions for competitive services with non-
published rates that include text for inclusion in the Mail 
Classification Schedule (MCS). Id. at 1-2, 3. The Postal Service 
asserts this classification change is consistent with the requirements 
of 39 U.S.C. 3642 and proposes conforming MCS language that it styles 
as a revision to the language for GREP Contracts 1. Id. at 7, 
Attachment 2B. The request to add GREP Contracts 2 to the MCS has been 
assigned Docket No. MC2013-51.
    The Postal Service states that the instant contract is the 
immediate successor to the contract included in GREP Contracts 1 in 
Docket No. CP2011-55. Id. at 4. The contract has been assigned Docket 
No. CP2013-64.

II. Contents of Filing

    In support of its Request, the Postal Service filed the following 
six attachments:
     Attachment 1--an application for non-public treatment of 
materials to maintain the contract and supporting documents under seal;
     Attachment 2A--a redacted copy of Governors' Decision No. 
11-6, which authorizes Postal Service management to prepare any 
necessary product description of nonpublished competitive services, 
including text for inclusion in the MCS, and to present such matter for 
review by the Commission;
     Attachment 2B--draft MCS language;
     Attachment 2C--a certified statement required by 39 CFR 
3015.5(c)(2); \3\
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    \3\ This certification was filed on May 28, 2013, as part of the 
Supplement.
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     Attachment 3--a Statement of Supporting Justification as 
required by 39 CFR 3020.32; and
     Attachment 4--a redacted copy of the contract.
    The Postal Service also filed supporting financial documents for 
the contract as part of the Supplement.
    The Postal Service filed a copy of the contract and Governors' 
Decision No. 11-6 with attachments under seal. Request at 4. It later 
filed the certified statement required by 39 CFR 3015.5(c)(2) and 
supporting documents establishing compliance with 39 U.S.C. 3633 and 39 
CFR 3015.5 under seal, incorporating by reference the application for 
non-public treatment submitted with its Request. Supplement at 2.
    In the Statement of Supporting Justification, Frank Cebello, 
Executive Director, Global Business Management, asserts that the 
service to be provided under the contract will ``improve the Postal 
Service's competitive posture,'' make a positive contribution to 
institutional costs, and increase contribution toward the requisite 5.5 
percent of the Postal Service's total institutional costs. Notice, 
Attachment 3 at 2. Thus, Mr. Cebello contends, there will be no issue 
of subsidization of competitive products by market dominant products as 
a result of this contract. Id. He states that he is unaware of any 
small business concerns that could offer comparable services, and that 
the contract will have a positive net impact on small business concerns 
because the contract provides ``an additional option for shipping 
articles internationally.'' Id. at 5.
    In the certified statement required under 39 CFR 3015.5, Steven 
Phelps, Acting Manager, Regulatory Reporting and Cost Analysis, Finance 
Department, states that the prices under the contract result ``in a 
cost coverage of in excess of the minimum required by the

[[Page 33452]]

Governors' Decision [No. 11-6], exclusive of pickup on demand and 
international ancillary services fees.'' Supplement, Attachment 2C. 
Nevertheless, Mr. Phelps concludes that the contract ``should cover its 
attributable costs and preclude the subsidization of competitive 
products by market dominant products.'' Id.
    The contract is scheduled to take effect upon the termination of 
the contract approved in Docket No. CP2011-55. Request at 5. The 
contract is scheduled to expire 1 year from the date the Postal Service 
notifies the customer that all necessary regulatory approvals have been 
received. Id. Either party may terminate the contract with 30 days 
written notice. Id. Attachment 4 at 8.

III. Commission Action

    The Commission establishes Docket Nos. MC2013-51 and CP2013-64 for 
consideration of matters raised in the Request.
    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 
3020 subpart B. Comments are due no later than June 4, 2013. The public 
portions of these filings can be accessed via the Commission's Web site 
(www.prc.gov). Information on how to obtain access to non public 
material appears at 39 CFR 3007.40.
    The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as 
Public Representative in these dockets.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-51 and CP2013-64 
for consideration of matters raised by the Postal Service's Request.
    2. Comments by interested persons in these proceedings are due no 
later than June 4, 2013.
    3. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is 
appointed to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-13078 Filed 6-3-13; 8:45 am]
BILLING CODE 7710-FW-P