[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 675-676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31541]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2014-14 and CP2014-23; Order No. 1938]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting the addition of First-Class Package Service Contract 35 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: January 7, 2014.

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 formal request and associated supporting 
information to add First-Class Package Service Contract 35 to the 
competitive product list.\1\ The Postal Service asserts that First-
Class Package Service Contract 35 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. MC2014-14.
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    \1\ Request of the United States Postal Service to Add First-
Class Package Service Contract 35 to Competitive Product List and 
Notice of Filing (Under Seal) of Unredacted Governors' Decision, 
Contract, and Supporting Data, December 27, 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. CP2014-23.
    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, make a positive contribution to 
covering institutional 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 following the day on 
which the Commission issues all regulatory approvals. Id. at 3. The 
contract will expire 3 years from the effective date unless, among 
other things, either party terminates the agreement upon 30 days' 
written notice to the other party. 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 within at least 
seven days of the contract's expiration date. Id. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a).\2\
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    \2\ 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 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. MC2014-14 and CP2014-23 to 
consider the Request pertaining to the proposed First-Class Package 
Service Contract 35 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 January 7, 2014. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Lawrence Fenster to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2014-14 and CP2014-23 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Lawrence Fenster 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 January 7, 2014.

[[Page 676]]

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

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-31541 Filed 1-3-14; 8:45 am]
BILLING CODE 7710-FW-P