[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Notices]
[Pages 43246-43247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17305]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2013-56 and CP2013-74; Order No. 1778]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Priority Mail Contract 62 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: July 22, 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. 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 request and associated supporting information to 
add Priority Mail Contract 62 to the competitive product list.\1\ It 
asserts that Priority Mail

[[Page 43247]]

Contract 62 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. MC2013-56.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 62 to Competitive Product List and Notice of Filing 
(Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, July 12, 2013 (Request).
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    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product. Id. Attachment B. The instant 
contract has been assigned Docket No. CP2013-74.
    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 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 one business day after the Commission 
issues all necessary regulatory approval. Id. at 2. The contract will 
expire three years from the effective date unless, among other things, 
either party terminates the agreement upon 30 days' written notice to 
the other party. Id. at 3. The contract also allows two 90-day 
extensions of the agreement if the preparation of a successor agreement 
is active and the Commission is notified.\2\ The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a).\3\
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    \2\ Id. In Docket Nos. MC2013-54 and CP2013-70, the Postal 
Service clarified that identical language in Priority Mail Contract 
60 ``contemplates the Postal Service filing any notices of extension 
with the Commission at least one week prior to the 3-year expiration 
date or the extended expiration date.'' See Docket Nos. MC2013-54 
and CP2013-70, Order No. 1773, Order Adding Priority Mail Contract 
60 to the Competitive Product List, July 8, 2013; see also Docket 
Nos. MC2013-54 and CP2013-70, Response of the United States Postal 
Service to Chairman's Information Request No. 1, July 1, 2013, at 
question 2.
    \3\ Although the Notice appears to state that the certification 
only pertains to paragraphs (1) and (3) of 39 U.S.C. 3633(a), the 
certification itself contains an assertion that the ``prices are in 
compliance with 39 U.S.C. 3633 (a)(1), (2), and (3).'' Id. at 2 and 
Attachment E.
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    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 Governors' Decision, 
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. MC2013-56 and CP2013-74 to 
consider the Request pertaining to the proposed Priority Mail Contract 
62 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 July 22, 2013. The 
public portions of these filings can be accessed via the Commission's 
Web site (http://www.prc.gov).
    The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as 
Public Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-56 and CP2013-74 
to consider the matters raised in each docket.
    2. 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.
    3. Comments by interested persons in these proceedings are due no 
later than July 22, 2013.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-17305 Filed 7-18-13; 8:45 am]
BILLING CODE 7710-FW-P