[Federal Register Volume 79, Number 57 (Tuesday, March 25, 2014)]
[Notices]
[Pages 16379-16380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06439]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2014-22 and CP2014-37; Order No. 2027]


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 Priority Mail Express, Priority Mail & 
First-Class Package Service Contract 2 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: March 26, 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: Brian Corcoran, Acting 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 Priority Mail Express, Priority Mail, and First-
Class Package Service Contract 2 to the competitive product list.\1\ 
The Postal Service asserts that Priority Mail Express, Priority Mail, 
and First-Class Package Service Contract 2 is a competitive product 
``not of general applicability'' within the meaning of 39

[[Page 16380]]

U.S.C. 3632(b)(3). Request at 1. The Request has been assigned Docket 
No. MC2014-22.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Express, Priority Mail & First-Class Package Service Contract 2 
to Competitive Product List and Notice of Filing (Under Seal) of 
Unredacted Governors' Decision, Contract, and Supporting Data, March 
18, 2014 (Request).
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    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39 
CFR 3015.5. Id. Attachment B. The instant contract has been assigned 
Docket No. CP2014-37.
    Request. To support its Request, the Postal Service filed six 
attachments: a copy of the contract, a redacted copy of Governors' 
Decision No. 11-6, proposed changes to the Mail Classification 
Schedule, a Statement of Supporting Justification, a certification of 
compliance with 39 U.S.C. 3633(a), and an application for non-public 
treatment of certain materials.
    In the Statement of Supporting Justification, the Postal Service 
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. It 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 
will expire 3 years from the effective date unless, among other things, 
either party terminates the agreement upon 90 days' written notice to 
the other party or the agreement is renewed by mutual written 
agreement. Id. at 4. 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 7 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 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. MC2014-22 and CP2014-37 to 
consider the Request pertaining to the proposed Priority Mail Express, 
Priority Mail, and First-Class Package Service Contract 2 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 March 26, 2014. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Curtis E. Kidd to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2014-22 and CP2014-37 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Curtis E. Kidd is appointed to serve 
as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    3. Comments by interested persons in these proceedings are due no 
later than March 26, 2014.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-06439 Filed 3-24-14; 8:45 am]
BILLING CODE 7710-FW-P