[Federal Register Volume 78, Number 210 (Wednesday, October 30, 2013)]
[Notices]
[Pages 65015-65016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25666]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2014-4 and CP2014-4; Order No. 1861]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing recent Postal Service filings 
requesting the addition of Parcel Return Service Contract 5 to the 
competitive product list. This notice informs the public of the 
filings, invites public comment, and takes other administrative steps.

DATES: Comments are due: October 31, 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 Parcel Return Service Contract 5 to the competitive product 
list.\1\ It is the successor agreement to the contract approved in 
Docket Nos. MC2011-6 and CP2011-33.\2\ Request at 1. The Postal Service 
asserts that Parcel Return Service Contract 5 is a competitive product 
``not of general applicability'' within the meaning of 39 U.S.C. 
3632(b)(3). Id. The Request has been assigned Docket No. MC2014-4.
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    \1\ Request of the United States Postal Service to Add Parcel 
Return Service Contract 5 to Competitive Product List and Notice of 
Filing (Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, October 23, 2013 (Request).
    \2\ See Docket Nos. MC2011-6 and CP2011-33, Order No. 602, Order 
Approving Parcel Return Service Contract 2 Negotiated Service 
Agreement, December 2, 2010; see also Docket Nos. MC2011-6 and 
CP2011-33, Order No. 1857, Order Granting Temporary Relief, October 
23, 2013.
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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. CP2014-4.
    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 8. The contract will 
expire three years from the effective date unless, among other things, 
early termination is mutually agreed upon in writing. Id. 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.\3\ 
The Postal Service represents that the contract is consistent with 39 
U.S.C. 3633(a).\4\
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    \3\ Id. Previously, 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, at 3; 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, question 2.
    \4\ Although the Request 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). See Request at 
2; 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. MC2014-4 and CP2014-4 to 
consider the Request pertaining to the proposed Parcel Return Service 
Contract 5 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 31, 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. MC2014-4 and CP2014-4 to 
consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is 
appointed

[[Page 65016]]

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 31, 2013.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-25666 Filed 10-29-13; 8:45 am]
BILLING CODE 7710-FW-P