Request of the Postal Service To Add Express Mail Contract to Competitive Product List, 47984-47986 [E8-18887]
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47984
Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
they reflect a consensus industry
perspective. However, the comment
period provided in the June 20 Federal
Register Notice is insufficient given the
volume of material and need for a
thorough technical review. Extending
the comment period would provide the
time necessary to fully assess the impact
of these proposed changes and arrive at
a set of comments that are of value to
the NRC staff.’’
Response to Request
The request for an extension to the
comment period is denied.
The information contained in DG–
1200 regarding internal fire and external
events has been available to the public
prior to the issuance of DG–1200 in June
of 2008 for public comment. Therefore,
DG–1200 does not ‘‘represent a
significant expansion over the current
Revision [Revision 1] by including
detailed technical information on fire
and external events PRAs.’’
DG–1200 provides high level
discussions on what constitutes a
technically acceptable Level 1 and Level
2 PRA for internal and external events,
which has been in the previous
revisions of the guide. Specifically, the
information for external events in DG–
1200 has not changed since the previous
revision. The information for internal
fires in DG–1200 was revised from the
previous revision; however, the
information is high level and was
revised to be consistent with the
standard (i.e., there was not anything
added to the DG–1200 that was new or
differing from the standard).
With regard to the internal fire
standard (Part 3 of the ASME/ANS RA–
S–2008 standard), as documented in
DG–1200, the staff has no objections to
the majority of the standard’s
requirements. The staff has continually
noted its position during development
of the standard and in a formal letter to
ASME in November 2007 (ADAMS
(https://www.nrc.gov/reading-rm/
adams.html), under Accession No.
073030364), and in an April 2008
interoffice letter from M. Cunningham
to C. Lui (ADAMS under Accession No.
080880202) which are publicly
available.
The staff issued DG–1138 in
September 2004 which provided the
staff position on Revision 0 of the
American Nuclear Society (ANS)
external events standard. Revision 1 of
the ANS standard (which is Part 4 of the
ASME/ANS RA–S–2008 PRA standard)
addressed the majority of the staff
objections. The staff position in DG–
1200, for the objections not addressed in
Part 4 of the ASME/ANS RA–S–2008
standard, is unchanged from DG–1138.
VerDate Aug<31>2005
19:03 Aug 14, 2008
Jkt 214001
Requests for technical information
about DG–1200 may be directed to the
NRC contact, Mary Drouin at (301) 415–
6675 or e-mail to Mary.Drouin@nrc.gov.
Electronic copies of DG–1200 are
available through the NRC’s public Web
site under Draft Regulatory Guides in
the ‘‘Regulatory Guides’’ collection of
the NRC’s Electronic Reading Room at
https://www.nrc.gov/reading-rm/doccollections/. Electronic copies are also
available in ADAMS (https://
www.nrc.gov/reading-rm/adams.html),
under Accession No. ML081200566.
In addition, regulatory guides are
available for inspection at the NRC’s
Public Document Room (PDR), which is
located at 11555 Rockville Pike,
Rockville, Maryland. The PDR’s mailing
address is USNRC PDR, Washington, DC
20555–0001. The PDR can also be
reached by telephone at (301) 415–4737
or (800) 397–4205, by fax at (301) 415–
3548, and by e-mail to
pdr.resource@nrc.gov.
Regulatory guides are not
copyrighted, and Commission approval
is not required to reproduce them.
Dated at Rockville, Maryland, this 11th day
of August 2008.
For the Nuclear Regulatory Commission.
Stephen C. O’Connor,
Acting Chief, Regulatory Guide Development
Branch, Division of Engineering, Office of
Nuclear Regulatory Research.
[FR Doc. E8–18920 Filed 8–14–08; 8:45 am]
BILLING CODE 7590–01–P
POSTAL SERVICE
Request of the Postal Service To Add
Express Mail Contract to Competitive
Product List
AGENCY:
ACTION:
Postal Service.
Notice.
SUMMARY: This notice sets forth the
request of the Postal Service to add a
new product (Express Mail Contract) to
the competitive product list.
DATES:
Effective Date: August 15, 2008.
FOR FURTHER INFORMATION CONTACT:
Daniel J. Foucheaux, Jr., 202–268–2989.
The Postal
Service in accordance with 39 U.S.C.
3642 and 39 CFR 3020.30 et seq. is filing
a Request before the Postal Regulatory
Commission, the addition of a new
product, Express Mail Contract 1, to the
competitive product list of the Mail
Classification Schedule. As required by
39 U.S.C. 3642(d)(1), the Request is
SUPPLEMENTARY INFORMATION:
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being published in the Federal Register.
The Request is set out below.
Neva R. Watson,
Attorney, FOIA/Privacy and Government
Relations.
Before the Postal Regulatory
Commission
Washington, DC 20268–0001
[Docket No. MC2008–5]
Modification of the Mail Classification
Schedule; Addition to Competitive
Product Category; Express Mail
Contract 1
Request of the United States Postal
Service To Add Express Mail Contract
to Competitive Product List and Notice
of Establishment of Rates and Class Not
of General Applicability
July 21, 2008.
In accordance with 39 U.S.C. 3642
and 39 CFR 3020.30 et seq., the United
States Postal Service hereby requests
modification of the Mail Classification
Schedule product list. The Postal
Service proposes to add Express Mail
Contract 1 to the competitive product
list.1 This is a competitive product not
of general applicability within the
meaning of 39 U.S.C. 3632(b)(3).2 A
redacted version of the Governors’
Decision establishing the price and
classification and a certification of the
Governors’ vote is provided in
Attachment A.3 Attachment B shows the
requested changes in the Mail
Classification product list with the
addition in brackets.4 Attachment C
provides a statement of supporting
justification for this request, as specified
in 39 CFR 3020.32.5
As explained in the supporting
justification, the Postal Service believes
that it is appropriate to add this contract
to the list of competitive products. The
Commission should therefore approve
this request as set forth in its rules. As
required by 39 U.S.C. 3642(d)(1), this
Request is being published in the
Federal Register .
The Postal Service also gives notice,
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5, that the Governors have
established prices and classifications
not of general applicability for this
contract.6 The prices and class are to be
effective one day after the Commission
approves the required addition to the
product list.7 An explanation and
1 39
CFR § 3020.31(a), (c).
§ 3020.31(d).
3 Id. § 3020.31(b).
4 Id. § 3020.31(f).
5 Id. § 3020.31(e).
6 Id. § 3015.5(a).
7 Id. § 3015.5(b).
2 Id.
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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
justification is provided in the
Governors’ Decision and accompanying
analysis, which are being filed in
unredacted version under seal.8 Also,
being filed under seal are the required
cost and revenue data 9 and certification
of compliance with 39 U.S.C. 3633(a)(1)
and (3).10
While aware that the Commission
intends to address broader
confidentiality issues in the future,11 the
Postal Service maintains that the
contract, related financial information,
the customer’s name and the portions of
the Governors’ Decision and
accompanying analysis that provides
prices, terms, and conditions should
remain confidential. The contract
contains pricing and other information
related to the customer and its processes
as well as to Postal Service processes
and procedures for handling the mail
tendered under the contract. Related
financial information contains cost and
pricing information underlying the
contract. Prices and other contract terms
relating to the parties’ processes and
procedures are highly confidential in
the business world and the Postal
Service protects them in accordance
with industry standards. The ability of
the Postal Service to negotiate such
contracts would be severely
compromised if prices and other
information pertaining to these types of
agreements were publicly disclosed.
Also, public disclosure would
compromise the ability of the customer
to negotiate favorable shipping services
contracts in the future. The name of the
customer should remain confidential
due to the substantial likelihood that the
Postal Service’s competitors would use
such information to target their efforts
and undercut the Postal Service’s prices.
The Postal Service is aware of no
competitor or private company of
comparable size and scope that releases
similar information to the public.
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Respectfully submitted,
United States Postal Service,
By its attorneys:
Daniel J. Foucheaux, Jr.,
Chief Counsel, Ratemaking,
Scott L. Reiter,
475 L’Enfant Plaza West, S.W.,
Washington, DC 20260–1137,
(202) 268–2999, Fax–5402,
scott.l.reiter@usps.gov,
July 21, 2008.
8 Id.
9 Id.
§ 3015.5(c)(1).
§ 3015.5(c)(2).
11 See Order No. 86, Order Concerning Global
Expedited Package Services Contract, Docket No.
CP2008–5, June 27, 2008, at 7.
10 Id.
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19:03 Aug 14, 2008
Jkt 214001
ATTACHMENT A to Postal Service
Request
Docket No. MC2008–5
Redacted Governors’ Decision
Decision of the Governors of the United
States Postal Service on Establishment
of Rate and Class Not of General
Applicability for Express Mail Service
(Governors’ Decision No. 08–9)
July 16, 2008.
Statement of Explanation and
Justification
The Postal Service and* * * have
entered into a shipping services contract
that provides specialized pricing
for* * * use of Express Mail service.
Accordingly, pursuant to our authority
under section 3632 of title 39, as
amended by the Postal Accountability
and Enhancement Act of 2006
(‘‘PAEA’’), we establish a new price not
of general applicability, and such
changes in classifications as are
necessary to implement the new price.
Under the contract,* * * The
contract is for three years.* * *
We have reviewed management’s
analysis of the contract, which is
attached. We have evaluated the new
price and classification changes in this
context in accordance with 39 U.S.C.
3632–3633 and 39 CFR 3015.5 and
3015.7. We approve the changes, finding
that they are appropriate, and are
consistent with the regulatory criteria,
as indicated by management.
47985
(39 U.S.C. 3633(a)(2)) and will result in
competitive products as a whole
complying with 39 U.S.C. 3633(a)(3),
which, as implemented by 39 CFR
3015.7(c), requires competitive products
to contribute a minimum of 5.5 percent
to the Postal Service’s total institutional
costs. Accordingly, no issue of
subsidization of competitive products
by market dominant products arises (39
U.S.C. 3633(a)(1)).
MAIL CLASSIFICATION SCHEDULE
PART B—COMPETITIVE PRODUCTS
2000 COMPETITIVE PRODUCT LIST
NEGOTIATED SERVICE
AGREEMENTS
Domestic
[Express Mail Contract 1]
Statement of Supporting Justification
I, Kim Parks, Manager, Sales and
Communications, Expedited Shipping,
am sponsoring this request that the
Commission add Express Mail Contract
1 to the list of competitive products.
This statement supports the Postal
Service’s request by providing the
information required by each applicable
subsection of 39 CFR 3020.32. I attest to
the accuracy of the information
contained herein.
(a) Demonstrate why the change is in
accordance with the policies and
applicable criteria of the Act.
As demonstrated below, the change
complies with the applicable statutory
provisions.
Order
(b) Explain why, as to the market
We direct management to file with the dominant products, the change is not
inconsistent with each requirement of
Postal Regulatory Commission
appropriate notice of these classification 39 U.S.C. 3622(d), and that it advances
the objectives of 39 U.S.C. 3622(b),
and rate changes and to request any
taking into account the factors of 39
needed addition to the competitive
U.S.C. 3622(c).
product list. The changes in price and
Not applicable. The Postal Service is
class set forth herein shall be effective
proposing that this Express Mail
one day after the Commission approves
any required addition to the product list contract be added to the competitive
products list.
under 39 CFR 3020 Subpart B.
(c) Explain why, as to competitive
By The Governors:
products, the addition, deletion, or
Alan C. Kessler lllllllllll
transfer will not result in the violation
Chairman
of any of the standards of 39 U.S.C.
Analysis of the Express Mail Service
3633.
The service to be provided under the
Contract with* * *
contract will cover its attributable costs
Under the terms of the Postal
and make a positive contribution to
Service’s Express Mail contract
coverage of institutional costs. The
with.* * *
contract will increase contribution
* * * The customized features
toward the requisite 5.5 percent of the
included in this contract will make the
Postal Service’s total institutional costs.
pieces less costly for the Postal Service
Accordingly, no issue of subsidization
than the average Express Mail
of competitive products by market
piece.* * *
dominant products arises (39 U.S.C.
Based on the estimated increase in
3633(a)(1)).
contribution from this contract, in light
(d) Verify that the change does not
of anticipated costs and volumes, this
classify as competitive a product over
contract will cover its attributable cost
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15AUN1
47986
Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices
which the Postal Service exercises
sufficient market power that it can
without risk of losing a significant level
of business to other firms offering
similar products: (1) Set the price of
such product substantially above costs,
(2) raise prices significantly; (3)
decrease quality; or (4) decrease output.
The contract sets specific terms and
conditions for providing Express Mail
service to the customer. Express Mail is
provided in a highly competitive
market. The Postal Service is unable to
set prices substantially above costs,
raise prices significantly, decrease
quality, or decrease output, without
losing this business to private
competitors in the expedited shipping
market.
In negotiating this contract, the Postal
Service’s bargaining position was
constrained by the existence of other
providers of services similar to the
Postal Service’s. As such, the market
precludes the Postal Service from taking
unilateral action to increase prices or
decrease service. As with Express Mail
service in general, the Postal Service
may not decrease quality or output
without risking the loss of business to
competitors that offer similar expedited
delivery services. The market does not
allow the Postal Service to raise prices
or offer prices substantially above costs;
rather, the contract is premised on
prices and terms that provide sufficient
incentive for the customer to ship with
the Postal Service rather than a
competitor.
mstockstill on PROD1PC66 with NOTICES
(e) Explain whether or not each
product that is the subject of the request
is covered by the postal monopoly as
reserved to the Postal Service under 189
U.S.C. 1696, subject to the exceptions
set forth in 39 U.S.C. 601.
I am advised that Express Mail service
and this contract are not covered by
these provisions. See part (d) above.
(f) Provide a description of the
availability and nature of enterprises in
the private sector engaged in the
delivery of the product.
See part (d) above. Expedited
shipping, including guaranteed
overnight shipping, is widely available
from well-known and successful private
firms at both published and contract
prices.
(g) Provide any available information
of the views of those who use the
product on the appropriateness of the
proposed modification.
Having entered into this contract with
the Postal Service, the customer
supports the addition of the contract to
the product list so that the contractual
terms can be effectuated.
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19:03 Aug 14, 2008
Jkt 214001
(h) Provide a description of the likely
impact of the proposed modification on
small business concerns.
The market for expedited delivery
services is highly competitive and
requires a substantial infrastructure to
support a national network. Large
shipping companies serve this market.
The Postal Service is unaware of any
small business concerns that could offer
comparable service for this customer.
(i) Include such other information,
data, and such statements of reasons
and bases, as are necessary and
appropriate to fully inform the
Commission of the nature, scope,
significance, and impact of the proposed
modification.
Additional details regarding the terms
of the contract have been provided to
the Commission under seal due to the
sensitivity of the contract to both the
customer and the Postal Service.
[FR Doc. E8–18887 Filed 8–14–08; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58326; File No. SR–CBOE–
2008–82]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Rules
Related to the Hybrid Agency Liaison
and the Complex Order RFQ Auction
August 7, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 31,
2008, the Chicago Board Options
Exchange, Incorporated ( ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
PO 00000
Frm 00111
Fmt 4703
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 6.14, Hybrid Agency Liaison (HAL),
so that the order eligibility requirements
mirror the requirements for the
Exchange’s Rule 6.13A, Simple Auction
Liaison (SAL). The Exchange also
proposes a similar modification to Rule
6.53C(d), Process for Complex Order
RFR Auction (‘‘COA’’), so that the
Exchange may determine eligible
complex order type and eligible
complex order origin code for COA on
a class-by-class basis. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal), at the Exchange’s
Office of the Secretary and at the
Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
HAL and COA are features within
CBOE’s Hybrid System. In classes where
HAL and/or COA are activated, eligible
orders are electronically exposed for an
exposure period. During the applicable
exposure period, the orders that are
subject to exposure are eligible to
receive a better price. At the conclusion
of the HAL or COA process, as
applicable, the order is then allocated
or, to the extent not executed, booked or
routed as described in the relevant
rules.
HAL exposes eligible simple orders
for price improvement. For HAL, an
eligible order is currently an order in an
option class designated by the Exchange
that is (i) a market order or limit order
that is marketable against the
Exchange’s disseminated quotation
while that quotation is not at the
national best bid or offer (‘‘NBBO’’); (ii)
a limit order that would improve the
Exchange’s disseminated quotation and
E:\FR\FM\15AUN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 159 (Friday, August 15, 2008)]
[Notices]
[Pages 47984-47986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18887]
=======================================================================
-----------------------------------------------------------------------
POSTAL SERVICE
Request of the Postal Service To Add Express Mail Contract to
Competitive Product List
AGENCY: Postal Service.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice sets forth the request of the Postal Service to
add a new product (Express Mail Contract) to the competitive product
list.
DATES: Effective Date: August 15, 2008.
FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, Jr., 202-268-
2989.
SUPPLEMENTARY INFORMATION: The Postal Service in accordance with 39
U.S.C. 3642 and 39 CFR 3020.30 et seq. is filing a Request before the
Postal Regulatory Commission, the addition of a new product, Express
Mail Contract 1, to the competitive product list of the Mail
Classification Schedule. As required by 39 U.S.C. 3642(d)(1), the
Request is being published in the Federal Register. The Request is set
out below.
Neva R. Watson,
Attorney, FOIA/Privacy and Government Relations.
Before the Postal Regulatory Commission
Washington, DC 20268-0001
[Docket No. MC2008-5]
Modification of the Mail Classification Schedule; Addition to
Competitive Product Category; Express Mail Contract 1
Request of the United States Postal Service To Add Express Mail
Contract to Competitive Product List and Notice of Establishment of
Rates and Class Not of General Applicability
July 21, 2008.
In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the
United States Postal Service hereby requests modification of the Mail
Classification Schedule product list. The Postal Service proposes to
add Express Mail Contract 1 to the competitive product list.\1\ This is
a competitive product not of general applicability within the meaning
of 39 U.S.C. 3632(b)(3).\2\ A redacted version of the Governors'
Decision establishing the price and classification and a certification
of the Governors' vote is provided in Attachment A.\3\ Attachment B
shows the requested changes in the Mail Classification product list
with the addition in brackets.\4\ Attachment C provides a statement of
supporting justification for this request, as specified in 39 CFR
3020.32.\5\
---------------------------------------------------------------------------
\1\ 39 CFR Sec. 3020.31(a), (c).
\2\ Id. Sec. 3020.31(d).
\3\ Id. Sec. 3020.31(b).
\4\ Id. Sec. 3020.31(f).
\5\ Id. Sec. 3020.31(e).
---------------------------------------------------------------------------
As explained in the supporting justification, the Postal Service
believes that it is appropriate to add this contract to the list of
competitive products. The Commission should therefore approve this
request as set forth in its rules. As required by 39 U.S.C. 3642(d)(1),
this Request is being published in the Federal Register .
The Postal Service also gives notice, pursuant to 39 U.S.C.
3632(b)(3) and 39 CFR 3015.5, that the Governors have established
prices and classifications not of general applicability for this
contract.\6\ The prices and class are to be effective one day after the
Commission approves the required addition to the product list.\7\ An
explanation and
[[Page 47985]]
justification is provided in the Governors' Decision and accompanying
analysis, which are being filed in unredacted version under seal.\8\
Also, being filed under seal are the required cost and revenue data \9\
and certification of compliance with 39 U.S.C. 3633(a)(1) and (3).\10\
---------------------------------------------------------------------------
\6\ Id. Sec. 3015.5(a).
\7\ Id. Sec. 3015.5(b).
\8\ Id.
\9\ Id. Sec. 3015.5(c)(1).
\10\ Id. Sec. 3015.5(c)(2).
---------------------------------------------------------------------------
While aware that the Commission intends to address broader
confidentiality issues in the future,\11\ the Postal Service maintains
that the contract, related financial information, the customer's name
and the portions of the Governors' Decision and accompanying analysis
that provides prices, terms, and conditions should remain confidential.
The contract contains pricing and other information related to the
customer and its processes as well as to Postal Service processes and
procedures for handling the mail tendered under the contract. Related
financial information contains cost and pricing information underlying
the contract. Prices and other contract terms relating to the parties'
processes and procedures are highly confidential in the business world
and the Postal Service protects them in accordance with industry
standards. The ability of the Postal Service to negotiate such
contracts would be severely compromised if prices and other information
pertaining to these types of agreements were publicly disclosed. Also,
public disclosure would compromise the ability of the customer to
negotiate favorable shipping services contracts in the future. The name
of the customer should remain confidential due to the substantial
likelihood that the Postal Service's competitors would use such
information to target their efforts and undercut the Postal Service's
prices. The Postal Service is aware of no competitor or private company
of comparable size and scope that releases similar information to the
public.
---------------------------------------------------------------------------
\11\ See Order No. 86, Order Concerning Global Expedited Package
Services Contract, Docket No. CP2008-5, June 27, 2008, at 7.
---------------------------------------------------------------------------
Respectfully submitted,
United States Postal Service,
By its attorneys:
Daniel J. Foucheaux, Jr.,
Chief Counsel, Ratemaking,
Scott L. Reiter,
475 L'Enfant Plaza West, S.W.,
Washington, DC 20260-1137,
(202) 268-2999, Fax-5402,
scott.l.reiter@usps.gov,
July 21, 2008.
ATTACHMENT A to Postal Service Request
Docket No. MC2008-5
Redacted Governors' Decision
Decision of the Governors of the United States Postal Service on
Establishment of Rate and Class Not of General Applicability for
Express Mail Service (Governors' Decision No. 08-9)
July 16, 2008.
Statement of Explanation and Justification
The Postal Service and* * * have entered into a shipping services
contract that provides specialized pricing for* * * use of Express Mail
service. Accordingly, pursuant to our authority under section 3632 of
title 39, as amended by the Postal Accountability and Enhancement Act
of 2006 (``PAEA''), we establish a new price not of general
applicability, and such changes in classifications as are necessary to
implement the new price.
Under the contract,* * * The contract is for three years.* * *
We have reviewed management's analysis of the contract, which is
attached. We have evaluated the new price and classification changes in
this context in accordance with 39 U.S.C. 3632-3633 and 39 CFR 3015.5
and 3015.7. We approve the changes, finding that they are appropriate,
and are consistent with the regulatory criteria, as indicated by
management.
Order
We direct management to file with the Postal Regulatory Commission
appropriate notice of these classification and rate changes and to
request any needed addition to the competitive product list. The
changes in price and class set forth herein shall be effective one day
after the Commission approves any required addition to the product list
under 39 CFR 3020 Subpart B.
By The Governors:
Alan C. Kessler--------------------------------------------------------
Chairman
Analysis of the Express Mail Service Contract with* * *
Under the terms of the Postal Service's Express Mail contract
with.* * *
* * * The customized features included in this contract will make
the pieces less costly for the Postal Service than the average Express
Mail piece.* * *
Based on the estimated increase in contribution from this contract,
in light of anticipated costs and volumes, this contract will cover its
attributable cost (39 U.S.C. 3633(a)(2)) and will result in competitive
products as a whole complying with 39 U.S.C. 3633(a)(3), which, as
implemented by 39 CFR 3015.7(c), requires competitive products to
contribute a minimum of 5.5 percent to the Postal Service's total
institutional costs. Accordingly, no issue of subsidization of
competitive products by market dominant products arises (39 U.S.C.
3633(a)(1)).
MAIL CLASSIFICATION SCHEDULE
PART B--COMPETITIVE PRODUCTS
2000 COMPETITIVE PRODUCT LIST
NEGOTIATED SERVICE AGREEMENTS
Domestic
[Express Mail Contract 1]
Statement of Supporting Justification
I, Kim Parks, Manager, Sales and Communications, Expedited
Shipping, am sponsoring this request that the Commission add Express
Mail Contract 1 to the list of competitive products. This statement
supports the Postal Service's request by providing the information
required by each applicable subsection of 39 CFR 3020.32. I attest to
the accuracy of the information contained herein.
(a) Demonstrate why the change is in accordance with the policies
and applicable criteria of the Act.
As demonstrated below, the change complies with the applicable
statutory provisions.
(b) Explain why, as to the market dominant products, the change is
not inconsistent with each requirement of 39 U.S.C. 3622(d), and that
it advances the objectives of 39 U.S.C. 3622(b), taking into account
the factors of 39 U.S.C. 3622(c).
Not applicable. The Postal Service is proposing that this Express
Mail contract be added to the competitive products list.
(c) Explain why, as to competitive products, the addition,
deletion, or transfer will not result in the violation of any of the
standards of 39 U.S.C. 3633.
The service to be provided under the contract will cover its
attributable costs and make a positive contribution to coverage of
institutional costs. The contract will increase contribution toward the
requisite 5.5 percent of the Postal Service's total institutional
costs. Accordingly, no issue of subsidization of competitive products
by market dominant products arises (39 U.S.C. 3633(a)(1)).
(d) Verify that the change does not classify as competitive a
product over
[[Page 47986]]
which the Postal Service exercises sufficient market power that it can
without risk of losing a significant level of business to other firms
offering similar products: (1) Set the price of such product
substantially above costs, (2) raise prices significantly; (3) decrease
quality; or (4) decrease output.
The contract sets specific terms and conditions for providing
Express Mail service to the customer. Express Mail is provided in a
highly competitive market. The Postal Service is unable to set prices
substantially above costs, raise prices significantly, decrease
quality, or decrease output, without losing this business to private
competitors in the expedited shipping market.
In negotiating this contract, the Postal Service's bargaining
position was constrained by the existence of other providers of
services similar to the Postal Service's. As such, the market precludes
the Postal Service from taking unilateral action to increase prices or
decrease service. As with Express Mail service in general, the Postal
Service may not decrease quality or output without risking the loss of
business to competitors that offer similar expedited delivery services.
The market does not allow the Postal Service to raise prices or offer
prices substantially above costs; rather, the contract is premised on
prices and terms that provide sufficient incentive for the customer to
ship with the Postal Service rather than a competitor.
(e) Explain whether or not each product that is the subject of the
request is covered by the postal monopoly as reserved to the Postal
Service under 189 U.S.C. 1696, subject to the exceptions set forth in
39 U.S.C. 601.
I am advised that Express Mail service and this contract are not
covered by these provisions. See part (d) above.
(f) Provide a description of the availability and nature of
enterprises in the private sector engaged in the delivery of the
product.
See part (d) above. Expedited shipping, including guaranteed
overnight shipping, is widely available from well-known and successful
private firms at both published and contract prices.
(g) Provide any available information of the views of those who use
the product on the appropriateness of the proposed modification.
Having entered into this contract with the Postal Service, the
customer supports the addition of the contract to the product list so
that the contractual terms can be effectuated.
(h) Provide a description of the likely impact of the proposed
modification on small business concerns.
The market for expedited delivery services is highly competitive
and requires a substantial infrastructure to support a national
network. Large shipping companies serve this market. The Postal Service
is unaware of any small business concerns that could offer comparable
service for this customer.
(i) Include such other information, data, and such statements of
reasons and bases, as are necessary and appropriate to fully inform the
Commission of the nature, scope, significance, and impact of the
proposed modification.
Additional details regarding the terms of the contract have been
provided to the Commission under seal due to the sensitivity of the
contract to both the customer and the Postal Service.
[FR Doc. E8-18887 Filed 8-14-08; 8:45 am]
BILLING CODE 7710-12-P
