[Federal Register Volume 90, Number 45 (Monday, March 10, 2025)]
[Proposed Rules]
[Pages 11594-11595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03786]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3041
[Docket No. RM2025-7, MC2025-1201 and K2025-1201; Order No. 8730]
Streamlined Option Rulemaking-Fulfillment--Non-Published Rates
Negotiated Service Agreements
AGENCY: Postal Regulatory Commission.
ACTION: Notification.
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SUMMARY: The Commission is acknowledging a recent Postal Service filing
requesting the Commission initiate a rulemaking proceeding for a
streamlined option to support the establishment of a new non-published
product, Fulfillment Non-Published Rates, and fulfillment standardized
distinct products. This document informs the public of the filing,
invites public comment, and takes other administrative steps.
DATES: Comments are due: March 12, 2025.
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: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Postal Service Requests
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On February 28, 2025, the Postal Service filed a petition to
initiate a proceeding for a streamlined option rulemaking to support
the establishment of a new non-published rates (NPR) product,
Fulfillment Non-Published Rates (FFNPR 1), and fulfillment standardized
distinct products (SDPs) pursuant to 39 CFR 3041.205.\1\ The Postal
Service separately filed a request to add a new Fulfillment
Standardized Distinct Product and Non-Published Rates (FFNPR) to the
Competitive product list pursuant to 39 U.S.C. 3642 and 3633, and 39
CFR 3035.105(a), 3041.320, and 3041.325.\2\
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\1\ Docket No. RM2025-7, USPS Petition for Streamlined Option
Rulemaking and Notice of Filing Non-Public Materials, February 28,
2025 (Petition).
\2\ Docket Nos. MC2025-1201 and K2025-1201, USPS Request to
Establish New Fulfillment Standardized Distinct Product and Non-
Published Rates (FFNPR) and Notice of Filing Materials Under Seal,
February 28, 2025 (Request); see Petition at 1 n.1.
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II. Postal Service Requests
Background. The Commission adopted rules for streamlined option
rulemakings in Docket No. RM2023-5 to ``address elements of 39 U.S.C.
3642 review and 39 U.S.C. 3633 pre-implementation review that are
broadly applicable to qualifying [negotiated service agreements
(NSAs)], and not particular to individual qualifying NSAs.'' \3\
Specifically, such proceedings are used to establish eligibility
criteria specifying the ways in which qualifying NSAs will be permitted
to vary from existing offerings, to review a proposed financial model
for qualifying NSAs that accounts for the financial impact of any such
variations, and to establish minimum rates for qualifying NSAs. Order
No. 7353 at 4.
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\3\ Docket No. RM2023-5, Final Order Amending Rules Regarding
Competitive Negotiated Service Agreements, August 9, 2024, at 4
(Order No. 7353).
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Streamlined option rulemaking. In accordance with 39 CFR
3041.205(c), the Postal Service submitted proposed Mail Classification
Schedule changes, a supporting financial model and the minimum rates
for Fulfillment Standardized Distinct Products and Non-Published Rates.
Petition at 1. The Postal Service states that included contracts within
FFNPRs and fulfillment SDPs will provide discounted rates for
``existing end-to-end [C]ompetitive products Priority Mail and USPS
Ground Advantage on the same basis as, and without any material changes
made to, the publicly available versions of those products.'' Id. at 2.
The Postal Service also states that the ``framework is designed for
customers who fulfill orders and ship on behalf of their clients, who
wish to ship the aforementioned products with the Postal Service and
are willing to utilize the Postal Service's contract templates.'' Id.
The Postal Service asserts that the ``financial analysis
demonstrates that each contract that utilizes this
[[Page 11595]]
framework will comply with 39 U.S.C. 3633 and will rely on reasonable
and reliable projected cost, revenue, and volume data.'' Id. at 1-2.
According to the Postal Service, the proposed framework utilizes the
archetype approach approved in Order No. 7334 and the financial model
is ``substantially similar to the model utilized for the Mid-Market
Non-Published Rates (MMNPR) product and approved by the Commission in
Docket No. RM2025-5.'' \4\
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\4\ See id. at 2; Docket Nos. MC2024-384 and CP2024-392, Order
Adding Priority Mail Express, Priority Mail & USPS Ground Advantage
Contract 123 to the Competitive Product List, August 5, 2024, at 7
(Order No. 7334) (citing Docket Nos. MC2024-384 and CP2024-392, USPS
Response to Chairman's Information Request No. 1, with Portions
Filed Under Seal, July 16, 2024, question 3); Docket Nos. RM2025-5,
K2025-491, and K2025-1124, Order Authorizing Streamlined Review for
Eligible Mid-Market Standardized Distinct Products and Non-Published
Rates Products and Adding Non-Published Rates Products to the
Competitive Product List, January 15, 2025 (Order No. 8617).
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The Postal Service further states that: ``[w]hile the archetype
definitions will remain the same, adjustments were made to the volume
and product distributions to accommodate the different structure for
fulfillment contracts''; the financial materials ``demonstrate cost
coverage in all ten archetype scenarios as well as under a national
average distribution''; and ``all FFNPR contracts are projected to
comfortably cover costs.'' Petition at 2.
Standardized Distinct Product and Non-Published Rates. Requests to
add conforming NPR NSA products to the Competitive product list are
reviewed in public proceedings, and, if approved, one or more included
contracts using the same contract template may be subsequently added to
the product without requiring further approval from the Commission. See
39 CFR 3041.320. Requests to add conforming SDP NSAs to the Competitive
product list are reviewed by the Commission in summary proceedings. 39
CFR 3041.325(c).
The Postal Service describes the Request as including 4 closely-
related contract templates similar to Priority Mail and USPS Ground
Advantage NSAs with fulfillment customers that have been filed with the
Commission over the past 12 months. Request at 2. The four proposed
contract templates reflect variations in pricing mechanisms. Id. The
Postal Service states that ``[t]he three Tiered templates will have 1-
Year, 2-Year, or 3-Year terms, while the Non-Tiered Annual template
will strictly be a 1-Year term'' and that the ``operative components in
all four templates are the same[.]'' Id.
The Postal Service states that ``[e]xpedited shipping, similar to
the Priority Mail and USPS Ground Advantage services provided under the
FFNPR contract templates, is widely available from well-known and
successful private firms at both published and contract prices.'' Id.
at 3. The Postal Service also states that ``[p]rospective customers are
in favor of the approval of the FFNPR contract templates'' and that it
``is unaware of any small business concerns that could offer comparable
services.'' Id. at 3-4.
III. Notice and Comment
The Commission establishes Docket No. RM2025-7 for consideration of
matters raised by the Petition and Docket Nos. MC2025-1201 and K2025-
1201 for consideration of matters raised by the Request. Interested
persons may submit comments. Comments are due no later than March 12,
2025. More information on the proceedings may be accessed via the
Commission's website at https://www.prc.gov.
Pursuant to 39 U.S.C. 505, Arif Hafiz is designated as an officer
of the Commission (Public Representative) to represent the interests of
the general public in these proceedings.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2025-7 for consideration
of the matters raised by the USPS Petition for Streamlined Option
Rulemaking and Notice of Filing Non-Public Materials, filed February
28, 2025.
2. The Commission establishes Docket Nos. MC2025-1201 and K2025-
1201 for consideration of the matters raised by the USPS Request to
Establish New Fulfillment Standardized Distinct Product and Non-
Published Rates (FFNPR) and Notice of Filing Materials Under Seal,
filed February 28, 2025.
3. Comments by interested persons are due no later than March 12,
2025.
4. Pursuant to 39 U.S.C. 505, the Commission appoints Arif Hafiz to
serve as an officer of the Commission (Public Representative) to
represent the interests of the general public in these dockets.
5. The Secretary shall arrange for the publication of this Order in
the Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2025-03786 Filed 3-7-25; 8:45 am]
BILLING CODE 7710-FW-P