New Postal Product, 65442-65445 [E9-29395]
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Federal Register / Vol. 74, No. 236 / Thursday, December 10, 2009 / Rules and Regulations
Commandant Instruction M16475.lD,
which guide the Coast Guard in
complying with the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321–4370f), and
have concluded that this action is one
of the category of actions which do not
individually or cumulatively have
significant effect on the human
environment. Therefore, this rule is
categorically excluded, under section
2.B.2 Figure 2–1, paragraph (34)(g), of
the Instruction and neither an
environmental assessment nor an
environmental impact statement is
required. This rule involves the
establishing, disestablishing, or
changing of a security or safety zone. An
environmental analysis checklist and a
categorical exclusion determination are
available in the docket where indicated
under ADDRESSES. The Coast Guard’s
environmental responsibilities extend
only to the creation of a safety and
security zone and do not address the
application of rotenone. Any questions
regarding the rotenone operation should
be addressed to Mr. Bill Bolen, U.S.
Environmental Protection Agency,
Senior Advisor, Great Lakes National
Program Office, 77 W. Jackson Blvd.,
Chicago, IL 60604, at (312) 353–6316.
List of Subjects in 33 CFR Part 165
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
■ For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
1. The authority citation for part 165
continues to read as follows:
■
Authority: 33 U.S.C. 1226, 1231; 46 U.S.C.
Chapter 701, 3306, 3703; 50 U.S.C. 191, 195;
33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;
Pub. L. 107–295, 116 Stat. 2064; Department
of Homeland Security Delegation No. 0170.1.
§ 165.923
[Suspended]
2. § 165.923 is suspended from
December 10, 2009 until 5 p.m. on
December 18, 2009.
■ 3. A new temporary § 165.T09–1052 is
added from December 10, 2009 until 5
p.m. on December 18, 2009 as follows:
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■
§ 165.T09–1052 Safety and Security Zone,
Chicago Sanitary and Ship Canal,
Romeoville, IL.
(a) Ruby Street Bridge to Lockport
Lock Safety and Security Zone.
(1) The following area is a temporary
safety and security zone: All waters of
the Chicago Sanitary and Ship Canal
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located between mile marker 291.0
(Lockport Lock and Dam) and mile
marker 288.6 (approximately 500 feet
south of the Ruby Street Bridge).
(2) Enforcement Period. The safety
and security zone will be enforced from
5 p.m. on November 30, 2009, until 5
p.m. on December 18, 2009. Beginning
December 1, 2009, the Coast Guard will
use actual notice to enforce this safety
and security zone until this rule is
published in the Federal Register.
(3) Regulations.
(i) In accordance with the general
regulations in § 165.23 of this part, entry
into, transiting, or anchoring within this
safety zone is prohibited unless
authorized by the Captain of the Port
Sector Lake Michigan, or her
representative.
(ii) The ‘‘representative’’ of the
Captain of the Port is any Coast Guard
commissioned, warrant or petty officer
who has been designated by the Captain
of the Port Sector Lake Michigan to act
on her behalf. The representative of the
Captain of the Port Sector Lake
Michigan will be aboard a Coast Guard,
Coast Guard Auxiliary, or other
designated vessel or will be on shore
and will communicate with vessels via
VHF–FM radio, loudhailer, or by phone.
The Captain of the Port Sector Lake
Michigan or her representative may be
contacted via VHF–FM radio Channel
16 or the Coast Guard Sector Lake
Michigan Command Center at 414–747–
7182.
(iii) Vessel operators desiring to enter
or operate within the safety and security
zone must comply with the provisions
of paragraph (b)(4)(iv) of this section or
contact the Captain of the Port Sector
Lake Michigan or her representative to
obtain permission to do so. Vessel
operators given permission to enter or
operate in the safety and security zone
must comply with all directions given to
them by the Captain of the Port Sector
Lake Michigan or her representative.
(iv) Until 8 a.m. on December 2, 2009,
vessels are permitted to transit the
safety and security zone.
(v) Starting at 8 a.m. on December 2,
2009, this safety and security zone is
closed to all vessel traffic, except as may
be permitted by the Captain of the Port
Sector Lake Michigan or her
representative. As soon as clean-up
efforts from the rotenone application are
complete, the Captain of the Port will
cause notice of the safety and security
zone being open to vessel transits, by all
appropriate means to effect the widest
publicity among the affected segments
of the public. Such means of
notification include but are not limited
to, Broadcast Notice to Mariners or
Local Notice to Mariners.
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Dated: November 27, 2009.
P.V. Neffenger,
Rear Admiral, U.S. Coast Guard, Commander,
Ninth Coast Guard District.
[FR Doc. E9–29417 Filed 12–9–09; 8:45 am]
BILLING CODE 9110–04–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2010–4 and CP2010–4;
Order No. 326]
New Postal Product
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Priority Mail Contract 22 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations.
Republication of the lists of market
dominant and competitive products is
also consistent with new requirements
in the law.
DATES: Effective December 10, 2009 and
is applicable beginning October 28,
2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 or
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Regulatory History, 74 FR 54600
(October 22, 2009).
I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
I. Introduction
The Postal Service seeks to add a new
product identified as Priority Mail
Contract 22 to the Competitive Product
List. For the reasons discussed below,
the Commission approves the Request.
II. Background
On October 14, 2009, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add Priority Mail Contract 22
to the Competitive Product List.1 The
Postal Service asserts that the Priority
Mail Contract 22 product is a
competitive product ‘‘not of general
applicability’’ within the meaning of 39
1 Request of the United States Postal Service to
Add Priority Mail Contract 22 to Competitive
Product List and Notice of Filing (Under Seal) of
Contract and Supporting Data, October 14, 2009
(Request).
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U.S.C. 3632(b)(3). This Request has been
assigned Docket No. MC2010–4.
The Postal Service
contemporaneously filed a contract
related to the proposed new product
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. The contract has been
assigned Docket No. CP2010–4.
In support of its Request, the Postal
Service filed the following materials: (1)
A redacted version of the Governors’
Decision, originally filed in Docket No.
MC2009–25, authorizing the Priority
Mail Contract Group; 2 (2) a redacted
version of the contract; 3 (3) a requested
change in the Mail Classification
Schedule product list; 4 (4) a Statement
of Supporting Justification as required
by 39 CFR 3020.32; 5 (5) a certification
of compliance with 39 U.S.C. 3633(a); 6
and (6) an application for non-public
treatment of the materials filed under
seal.7 The redacted version of the
contract provides that the contract is
terminable on 30 days’ notice by either
party, but could continue for 3 years
from the effective date subject to annual
price adjustments. Request, Attachment
B.
In the Statement of Supporting
Justification, Mary Prince Anderson,
Acting Manager, Sales and
Communications, Expedited Shipping,
asserts that the service to be provided
under the contract will cover its
attributable costs, make a positive
contribution to coverage of institutional
costs, and will increase contribution
toward the requisite 5.5 percent of the
Postal Service’s total institutional costs.
Request, Attachment D, at 1. W. Ashley
Lyons, Manager, Regulatory Reporting
and Cost Analysis, Finance Department,
certifies that the contract complies with
39 U.S.C. 3633(a). Id., Attachment E.
The Postal Service filed much of the
supporting materials, including the
supporting data and the unredacted
contract, under seal. The Postal Service
maintains that the contract and related
financial information, including the
customer’s name and the accompanying
analyses that provide prices, certain
terms and conditions, and financial
projections, should remain confidential.
Id., Attachment F, at 2–3.8
2 Attachment A to the Request, reflecting
Governors’ Decision No. 09–6, April 27, 2009.
3 Attachment B to the Request.
4 Attachment C to the Request.
5 Attachment D to the Request.
6 Attachment E to the Request.
7 Attachment F to the Request.
8 In its application for non-public treatment, the
Postal Service requests an indefinite extension of
non-public treatment of customer-identifying
information. Id. at 7. For the reasons discussed in
PRC Order No. 323, that request is denied. See
Docket No. MC2010–1 and CP2010–1, Order
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16:49 Dec 09, 2009
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In Order No. 317, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.9
III. Comments
Comments were filed by the Public
Representative.10 No comments were
submitted by other interested parties.
The Public Representative states that the
Postal Service’s filing meets the
pertinent provisions of title 39 and the
relevant Commission rules. Id. at 1, 3.
He further states that the agreement
employs pricing terms favorable to the
customer, the Postal Service, and
thereby, the public. Id. at 3–4. The
Public Representative also believes that
the Postal Service has provided
appropriate justification for maintaining
confidentiality in this case. Id. at 3.
IV. Commission Analysis
The Commission has reviewed the
Request, the contract, the financial
analysis provided under seal that
accompanies it, and the comments filed
by the Public Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning Priority
Mail Contract 22 to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
3642. As part of this responsibility, the
Commission also reviews the proposal
for compliance with the Postal
Accountability and Enhancement Act
(PAEA) requirements. This includes, for
proposed competitive products, a
review of the provisions applicable to
rates for competitive products. 39 U.S.C.
3633.
Product list assignment. In
determining whether to assign Priority
Mail Contract 22 as a product to the
Market Dominant Product List or the
Competitive Product List, the
Commission must consider whether
the Postal Service exercises sufficient market
power that it can effectively set the price of
such product substantially above costs, raise
prices significantly, decrease quality, or
decrease output, without risk of losing a
significant level of business to other firms
offering similar products.
Concerning Priority Mail Contract 19 Negotiated
Service Agreement, October 26, 2009.
9 PRC Order No. 317, Notice and Order
Concerning Priority Mail Contract 22 Negotiated
Service Agreement, October 16, 2009 (Order No.
317).
10 Public Representative Comments in Response
to United States Postal Service Request to Add
Priority Mail Contract 22 Negotiated Service
Agreement to the Competitive Products List,
October 26, 2009 (Public Representative
Comments).
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65443
39 U.S.C. 3642(b)(1). If so, the product
will be categorized as market dominant.
The competitive category of products
consists of all other products.
The Commission is further required to
consider the availability and nature of
enterprises in the private sector engaged
in the delivery of the product, the views
of those who use the product, and the
likely impact on small business
concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its
bargaining position is constrained by
the existence of other shippers who can
provide similar services, thus
precluding it from taking unilateral
action to increase prices without the
risk of losing volume to private
companies. Request, Attachment D,
para. (d). The Postal Service also
contends that it may not decrease
quality or output without risking the
loss of business to competitors that offer
similar expedited delivery services. Id.
It further states that the contract partner
supports the addition of the contract to
the Competitive Product List to
effectuate the negotiated contractual
terms. Id., para. (g). Finally, the Postal
Service states that the market for
expedited delivery services is highly
competitive and requires a substantial
infrastructure to support a national
network. It indicates that large carriers
serve this market. Accordingly, the
Postal Service states that it is unaware
of any small business concerns that
could offer comparable service for this
customer. Id., para. (h).
No commenter opposes the proposed
classification of Priority Mail Contract
22 as competitive. Having considered
the statutory requirements and the
support offered by the Postal Service,
the Commission finds that Priority Mail
Contract 22 is appropriately classified as
a competitive product and should be
added to the Competitive Product List.
Cost considerations. The Postal
Service presents a financial analysis
showing that Priority Mail Contract 22
results in cost savings while ensuring
that the contract covers its attributable
costs, does not result in subsidization of
competitive products by market
dominant products, and increases
contribution from competitive products.
Based on the data submitted, the
Commission finds that Priority Mail
Contract 22 should cover its attributable
costs (39 U.S.C. 3633(a)(2)), should not
lead to the subsidization of competitive
products by market dominant products
(39 U.S.C. 3633(a)(1)), and should have
a positive effect on competitive
products’ contribution to institutional
costs (39 U.S.C. 3633(a)(3)). Thus, an
initial review of proposed Priority Mail
Contract 22 indicates that it comports
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Federal Register / Vol. 74, No. 236 / Thursday, December 10, 2009 / Rules and Regulations
with the provisions applicable to rates
for competitive products.
Other considerations. The Postal
Service shall notify the Commission if
termination occurs prior to the
scheduled termination date. Following
the scheduled termination date of the
agreement, the Commission will remove
the product from the Competitive
Product List.
In conclusion, the Commission
approves Priority Mail Contract 22 as a
new product. The revision to the
Competitive Product List is shown
below the signature of this order and is
effective upon issuance of this order.
V. Ordering Paragraphs
It is ordered:
1. Priority Mail Contract 22 (MC2010–
4 and CP2010–4) is added to the
Competitive Product List as a new
product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the
Commission if termination occurs prior
to the scheduled termination date.
3. The Secretary shall arrange for the
publication of this order in the Federal
Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and
procedure; Postal Service.
By the Commission.
Judith M. Grady,
Acting Secretary.
For the reasons discussed in the
preamble, the Postal Regulatory
Commission amends chapter III of title
39 of the Code of Federal Regulations as
follows:
■
PART 3020—PRODUCT LISTS
1. The authority citation for part 3020
continues to read as follows:
■
Authority: 39 U.S.C. 503; 3622; 3631; 3642;
3682.
2. Revise Appendix A to Subpart A of
Part 3020—Mail Classification Schedule
to read as follows:
■
Appendix A to Subpart A of Part
3020—Mail Classification Schedule
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Part A—Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail
International
Inbound Single-Piece First-Class Mail
International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
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16:49 Dec 09, 2009
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High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card
Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc.
Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Inbound International
Canada Post—United States Postal Service
Contractual Bilateral Agreement for
Inbound Market Dominant Services
Market Dominant Product Descriptions
First-Class Mail
[Reserved for Class Description]
Single-Piece Letters/Postcards
[Reserved for Product Description]
Bulk Letters/Postcards
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Parcels
[Reserved for Product Description]
Outbound Single-Piece First-Class Mail
International
[Reserved for Product Description]
Inbound Single-Piece First-Class Mail
International
[Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
High Density and Saturation Letters
[Reserved for Product Description]
High Density and Saturation Flats/Parcels
[Reserved for Product Description]
Carrier Route
[Reserved for Product Description]
Letters
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels
[Reserved for Product Description]
Periodicals
[Reserved for Class Description]
Within County Periodicals
[Reserved for Product Description]
Outside County Periodicals
[Reserved for Product Description]
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Package Services
[Reserved for Class Description]
Single-Piece Parcel Post
[Reserved for Product Description]
Inbound Surface Parcel Post (at UPU rates)
[Reserved for Product Description]
Bound Printed Matter Flats
[Reserved for Product Description]
Bound Printed Matter Parcels
[Reserved for Product Description]
Media Mail/Library Mail
[Reserved for Product Description]
Special Services
[Reserved for Class Description]
Ancillary Services
[Reserved for Product Description]
Address Correction Service
[Reserved for Product Description]
Applications and Mailing Permits
[Reserved for Product Description]
Business Reply Mail
[Reserved for Product Description]
Bulk Parcel Return Service
[Reserved for Product Description]
Certified Mail
[Reserved for Product Description]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card
Authentication
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[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc.
Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
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Part B—Competitive Products
2000 Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1
(CP2008–7)
Inbound International Expedited Services 2
(MC2009–10 and CP2009–12)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Royal Mail Group Inbound Air Parcel Post
Agreement
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks—M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU
rates)
Canada Post—United States Postal Service
Contractual Bilateral Agreement for
Inbound Competitive Services (MC2009–
8 and CP2009–9)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008–5)
Express Mail Contract 2 (MC2009–3 and
CP2009–4)
Express Mail Contract 3 (MC2009–15 and
CP2009–21)
Express Mail Contract 4 (MC2009–34 and
CP2009–45)
Express Mail & Priority Mail Contract 1
(MC2009–6 and CP2009–7)
Express Mail & Priority Mail Contract 2
(MC2009–12 and CP2009–14)
Express Mail & Priority Mail Contract 3
(MC2009–13 and CP2009–17)
Express Mail & Priority Mail Contract 4
(MC2009–17 and CP2009–24)
Express Mail & Priority Mail Contract 5
(MC2009–18 and CP2009–25)
Express Mail & Priority Mail Contract 6
(MC2009–31 and CP2009–42)
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16:49 Dec 09, 2009
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Express Mail & Priority Mail Contract 7
(MC2009–32 and CP2009–43)
Express Mail & Priority Mail Contract 8
(MC2009–33 and CP2009–44)
Parcel Select & Parcel Return Service
Contract 1 (MC2009–11 and CP2009–13)
Parcel Select & Parcel Return Service
Contract 2 (MC2009–40 and CP2009–61)
Parcel Return Service Contract 1 (MC2009–
1 and CP2009–2)
Priority Mail Contract 1 (MC2008–8 and
CP2008–26)
Priority Mail Contract 2 (MC2009–2 and
CP2009–3)
Priority Mail Contract 3 (MC2009–4 and
CP2009–5)
Priority Mail Contract 4 (MC2009–5 and
CP2009–6)
Priority Mail Contract 5 (MC2009–21 and
CP2009–26)
Priority Mail Contract 6 (MC2009–25 and
CP2009–30)
Priority Mail Contract 7 (MC2009–25 and
CP2009–31)
Priority Mail Contract 8 (MC2009–25 and
CP2009–32)
Priority Mail Contract 9 (MC2009–25 and
CP2009–33)
Priority Mail Contract 10 (MC2009–25 and
CP2009–34)
Priority Mail Contract 11 (MC2009–27 and
CP2009–37)
Priority Mail Contract 12 (MC2009–28 and
CP2009–38)
Priority Mail Contract 13 (MC2009–29 and
CP2009–39)
Priority Mail Contract 14 (MC2009–30 and
CP2009–40)
Priority Mail Contract 15 (MC2009–35 and
CP2009–54)
Priority Mail Contract 16 (MC2009–36 and
CP2009–55)
Priority Mail Contract 17 (MC2009–37 and
CP2009–56)
Priority Mail Contract 18 (MC2009–42 and
CP2009–63)
Priority Mail Contract 19 (MC2010–1 and
CP2010–1)
Priority Mail Contract 20 (MC2010–2 and
CP2010–2)
Priority Mail Contract 21 (MC2010–3 and
CP2010–3)
Priority Mail Contract 22 (MC2010–4 and
CP2010–4)
Outbound International
Direct Entry Parcels Contracts
Direct Entry Parcels 1 (MC2009–26 and
CP2009–36)
Global Direct Contracts (MC2009–9,
CP2009–10, and CP2009–11)
Global Expedited Package Services (GEPS)
Contracts
GEPS 1 (CP2008–5, CP2008–11, CP2008–
12, and CP2008–13, CP2008–18,
CP2008–19, CP2008–20, CP2008–21,
CP2008–22, CP2008–23, and CP2008–24)
Global Expedited Package Services 2
(CP2009–50)
Global Plus Contracts
Global Plus 1 (CP2008–8, CP2008–46 and
CP2009–47)
Global Plus 2 (MC2008–7, CP2008–48 and
CP2008–49)
Inbound International
Inbound Direct Entry Contracts with
Foreign Postal Administrations
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65445
Inbound Direct Entry Contracts with
Foreign Postal Administrations
(MC2008–6, CP2008–14 and MC2008–
15)
Inbound Direct Entry Contracts with
Foreign Postal Administrations 1
(MC2008–6 and CP2009–62)
International Business Reply Service
Competitive Contract 1 (MC2009–14 and
CP2009–20)
Competitive Product Descriptions
Express Mail
[Reserved for Group Description]
Express Mail
[Reserved for Product Description]
Outbound International Expedited Services
[Reserved for Product Description]
Inbound International Expedited Services
[Reserved for Product Description]
Priority
[Reserved for Product Description]
Priority Mail
[Reserved for Product Description]
Outbound Priority Mail International
[Reserved for Product Description]
Inbound Air Parcel Post
[Reserved for Product Description]
Parcel Select
[Reserved for Group Description]
Parcel Return Service
[Reserved for Group Description]
International
[Reserved for Group Description]
International Priority Airlift (IPA)
[Reserved for Product Description]
International Surface Airlift (ISAL)
[Reserved for Product Description]
International Direct Sacks—M-Bags
[Reserved for Product Description]
Global Customized Shipping Services
[Reserved for Product Description]
International Money Transfer Service
[Reserved for Product Description]
Inbound Surface Parcel Post (at non-UPU
rates)
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
International Insurance
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Group Description]
Domestic
[Reserved for Product Description]
Outbound International
[Reserved for Group Description]
Part C—Glossary of Terms and Conditions
[Reserved]
Part D—Country Price Lists for International
Mail [Reserved]
[FR Doc. E9–29395 Filed 12–9–09; 8:45 am]
BILLING CODE 7710–FW–P
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]]>Agencies
[Federal Register Volume 74, Number 236 (Thursday, December 10, 2009)]
[Rules and Regulations]
[Pages 65442-65445]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29395]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2010-4 and CP2010-4; Order No. 326]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Commission is adding Priority Mail Contract 22 to the
Competitive Product List. This action is consistent with changes in a
recent law governing postal operations. Republication of the lists of
market dominant and competitive products is also consistent with new
requirements in the law.
DATES: Effective December 10, 2009 and is applicable beginning October
28, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Regulatory History, 74 FR 54600 (October 22, 2009).
I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
I. Introduction
The Postal Service seeks to add a new product identified as
Priority Mail Contract 22 to the Competitive Product List. For the
reasons discussed below, the Commission approves the Request.
II. Background
On October 14, 2009, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority
Mail Contract 22 to the Competitive Product List.\1\ The Postal Service
asserts that the Priority Mail Contract 22 product is a competitive
product ``not of general applicability'' within the meaning of 39
[[Page 65443]]
U.S.C. 3632(b)(3). This Request has been assigned Docket No. MC2010-4.
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract 22 to Competitive Product List and Notice of Filing
(Under Seal) of Contract and Supporting Data, October 14, 2009
(Request).
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The Postal Service contemporaneously filed a contract related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contract has been assigned Docket No. CP2010-4.
In support of its Request, the Postal Service filed the following
materials: (1) A redacted version of the Governors' Decision,
originally filed in Docket No. MC2009-25, authorizing the Priority Mail
Contract Group; \2\ (2) a redacted version of the contract; \3\ (3) a
requested change in the Mail Classification Schedule product list; \4\
(4) a Statement of Supporting Justification as required by 39 CFR
3020.32; \5\ (5) a certification of compliance with 39 U.S.C. 3633(a);
\6\ and (6) an application for non-public treatment of the materials
filed under seal.\7\ The redacted version of the contract provides that
the contract is terminable on 30 days' notice by either party, but
could continue for 3 years from the effective date subject to annual
price adjustments. Request, Attachment B.
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\2\ Attachment A to the Request, reflecting Governors' Decision
No. 09-6, April 27, 2009.
\3\ Attachment B to the Request.
\4\ Attachment C to the Request.
\5\ Attachment D to the Request.
\6\ Attachment E to the Request.
\7\ Attachment F to the Request.
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In the Statement of Supporting Justification, Mary Prince Anderson,
Acting Manager, Sales and Communications, Expedited Shipping, asserts
that the service to be provided under the contract will cover its
attributable costs, make a positive contribution to coverage of
institutional costs, and will increase contribution toward the
requisite 5.5 percent of the Postal Service's total institutional
costs. Request, Attachment D, at 1. W. Ashley Lyons, Manager,
Regulatory Reporting and Cost Analysis, Finance Department, certifies
that the contract complies with 39 U.S.C. 3633(a). Id., Attachment E.
The Postal Service filed much of the supporting materials,
including the supporting data and the unredacted contract, under seal.
The Postal Service maintains that the contract and related financial
information, including the customer's name and the accompanying
analyses that provide prices, certain terms and conditions, and
financial projections, should remain confidential. Id., Attachment F,
at 2-3.\8\
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\8\ In its application for non-public treatment, the Postal
Service requests an indefinite extension of non-public treatment of
customer-identifying information. Id. at 7. For the reasons
discussed in PRC Order No. 323, that request is denied. See Docket
No. MC2010-1 and CP2010-1, Order Concerning Priority Mail Contract
19 Negotiated Service Agreement, October 26, 2009.
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In Order No. 317, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\9\
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\9\ PRC Order No. 317, Notice and Order Concerning Priority Mail
Contract 22 Negotiated Service Agreement, October 16, 2009 (Order
No. 317).
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III. Comments
Comments were filed by the Public Representative.\10\ No comments
were submitted by other interested parties. The Public Representative
states that the Postal Service's filing meets the pertinent provisions
of title 39 and the relevant Commission rules. Id. at 1, 3. He further
states that the agreement employs pricing terms favorable to the
customer, the Postal Service, and thereby, the public. Id. at 3-4. The
Public Representative also believes that the Postal Service has
provided appropriate justification for maintaining confidentiality in
this case. Id. at 3.
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\10\ Public Representative Comments in Response to United States
Postal Service Request to Add Priority Mail Contract 22 Negotiated
Service Agreement to the Competitive Products List, October 26, 2009
(Public Representative Comments).
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IV. Commission Analysis
The Commission has reviewed the Request, the contract, the
financial analysis provided under seal that accompanies it, and the
comments filed by the Public Representative.
Statutory requirements. The Commission's statutory responsibilities
in this instance entail assigning Priority Mail Contract 22 to either
the Market Dominant Product List or to the Competitive Product List. 39
U.S.C. 3642. As part of this responsibility, the Commission also
reviews the proposal for compliance with the Postal Accountability and
Enhancement Act (PAEA) requirements. This includes, for proposed
competitive products, a review of the provisions applicable to rates
for competitive products. 39 U.S.C. 3633.
Product list assignment. In determining whether to assign Priority
Mail Contract 22 as a product to the Market Dominant Product List or
the Competitive Product List, the Commission must consider whether
the Postal Service exercises sufficient market power that it can
effectively set the price of such product substantially above costs,
raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other
firms offering similar products.
39 U.S.C. 3642(b)(1). If so, the product will be categorized as market
dominant. The competitive category of products consists of all other
products.
The Commission is further required to consider the availability and
nature of enterprises in the private sector engaged in the delivery of
the product, the views of those who use the product, and the likely
impact on small business concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its bargaining position is
constrained by the existence of other shippers who can provide similar
services, thus precluding it from taking unilateral action to increase
prices without the risk of losing volume to private companies. Request,
Attachment D, para. (d). The Postal Service also contends that it may
not decrease quality or output without risking the loss of business to
competitors that offer similar expedited delivery services. Id. It
further states that the contract partner supports the addition of the
contract to the Competitive Product List to effectuate the negotiated
contractual terms. Id., para. (g). Finally, the Postal Service states
that the market for expedited delivery services is highly competitive
and requires a substantial infrastructure to support a national
network. It indicates that large carriers serve this market.
Accordingly, the Postal Service states that it is unaware of any small
business concerns that could offer comparable service for this
customer. Id., para. (h).
No commenter opposes the proposed classification of Priority Mail
Contract 22 as competitive. Having considered the statutory
requirements and the support offered by the Postal Service, the
Commission finds that Priority Mail Contract 22 is appropriately
classified as a competitive product and should be added to the
Competitive Product List.
Cost considerations. The Postal Service presents a financial
analysis showing that Priority Mail Contract 22 results in cost savings
while ensuring that the contract covers its attributable costs, does
not result in subsidization of competitive products by market dominant
products, and increases contribution from competitive products.
Based on the data submitted, the Commission finds that Priority
Mail Contract 22 should cover its attributable costs (39 U.S.C.
3633(a)(2)), should not lead to the subsidization of competitive
products by market dominant products (39 U.S.C. 3633(a)(1)), and should
have a positive effect on competitive products' contribution to
institutional costs (39 U.S.C. 3633(a)(3)). Thus, an initial review of
proposed Priority Mail Contract 22 indicates that it comports
[[Page 65444]]
with the provisions applicable to rates for competitive products.
Other considerations. The Postal Service shall notify the
Commission if termination occurs prior to the scheduled termination
date. Following the scheduled termination date of the agreement, the
Commission will remove the product from the Competitive Product List.
In conclusion, the Commission approves Priority Mail Contract 22 as
a new product. The revision to the Competitive Product List is shown
below the signature of this order and is effective upon issuance of
this order.
V. Ordering Paragraphs
It is ordered:
1. Priority Mail Contract 22 (MC2010-4 and CP2010-4) is added to
the Competitive Product List as a new product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the Commission if termination
occurs prior to the scheduled termination date.
3. The Secretary shall arrange for the publication of this order in
the Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure; Postal Service.
By the Commission.
Judith M. Grady,
Acting Secretary.
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For the reasons discussed in the preamble, the Postal Regulatory
Commission amends chapter III of title 39 of the Code of Federal
Regulations as follows:
PART 3020--PRODUCT LISTS
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1. The authority citation for part 3020 continues to read as follows:
Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.
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2. Revise Appendix A to Subpart A of Part 3020--Mail Classification
Schedule to read as follows:
Appendix A to Subpart A of Part 3020--Mail Classification Schedule
Part A--Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail International
Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc. Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Inbound International
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Market Dominant Services
Market Dominant Product Descriptions
First-Class Mail
[Reserved for Class Description]
Single-Piece Letters/Postcards
[Reserved for Product Description]
Bulk Letters/Postcards
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Parcels
[Reserved for Product Description]
Outbound Single-Piece First-Class Mail International
[Reserved for Product Description]
Inbound Single-Piece First-Class Mail International
[Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
High Density and Saturation Letters
[Reserved for Product Description]
High Density and Saturation Flats/Parcels
[Reserved for Product Description]
Carrier Route
[Reserved for Product Description]
Letters
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels
[Reserved for Product Description]
Periodicals
[Reserved for Class Description]
Within County Periodicals
[Reserved for Product Description]
Outside County Periodicals
[Reserved for Product Description]
Package Services
[Reserved for Class Description]
Single-Piece Parcel Post
[Reserved for Product Description]
Inbound Surface Parcel Post (at UPU rates)
[Reserved for Product Description]
Bound Printed Matter Flats
[Reserved for Product Description]
Bound Printed Matter Parcels
[Reserved for Product Description]
Media Mail/Library Mail
[Reserved for Product Description]
Special Services
[Reserved for Class Description]
Ancillary Services
[Reserved for Product Description]
Address Correction Service
[Reserved for Product Description]
Applications and Mailing Permits
[Reserved for Product Description]
Business Reply Mail
[Reserved for Product Description]
Bulk Parcel Return Service
[Reserved for Product Description]
Certified Mail
[Reserved for Product Description]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card Authentication
[[Page 65445]]
[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc. Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Part B--Competitive Products
2000 Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1 (CP2008-7)
Inbound International Expedited Services 2 (MC2009-10 and
CP2009-12)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Royal Mail Group Inbound Air Parcel Post Agreement
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks--M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU rates)
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Competitive Services (MC2009-8 and CP2009-9)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008-5)
Express Mail Contract 2 (MC2009-3 and CP2009-4)
Express Mail Contract 3 (MC2009-15 and CP2009-21)
Express Mail Contract 4 (MC2009-34 and CP2009-45)
Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-
14)
Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009-
17)
Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009-
24)
Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009-
25)
Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-
42)
Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009-
43)
Express Mail & Priority Mail Contract 8 (MC2009-33 and CP2009-
44)
Parcel Select & Parcel Return Service Contract 1 (MC2009-11 and
CP2009-13)
Parcel Select & Parcel Return Service Contract 2 (MC2009-40 and
CP2009-61)
Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
Priority Mail Contract 1 (MC2008-8 and CP2008-26)
Priority Mail Contract 2 (MC2009-2 and CP2009-3)
Priority Mail Contract 3 (MC2009-4 and CP2009-5)
Priority Mail Contract 4 (MC2009-5 and CP2009-6)
Priority Mail Contract 5 (MC2009-21 and CP2009-26)
Priority Mail Contract 6 (MC2009-25 and CP2009-30)
Priority Mail Contract 7 (MC2009-25 and CP2009-31)
Priority Mail Contract 8 (MC2009-25 and CP2009-32)
Priority Mail Contract 9 (MC2009-25 and CP2009-33)
Priority Mail Contract 10 (MC2009-25 and CP2009-34)
Priority Mail Contract 11 (MC2009-27 and CP2009-37)
Priority Mail Contract 12 (MC2009-28 and CP2009-38)
Priority Mail Contract 13 (MC2009-29 and CP2009-39)
Priority Mail Contract 14 (MC2009-30 and CP2009-40)
Priority Mail Contract 15 (MC2009-35 and CP2009-54)
Priority Mail Contract 16 (MC2009-36 and CP2009-55)
Priority Mail Contract 17 (MC2009-37 and CP2009-56)
Priority Mail Contract 18 (MC2009-42 and CP2009-63)
Priority Mail Contract 19 (MC2010-1 and CP2010-1)
Priority Mail Contract 20 (MC2010-2 and CP2010-2)
Priority Mail Contract 21 (MC2010-3 and CP2010-3)
Priority Mail Contract 22 (MC2010-4 and CP2010-4)
Outbound International
Direct Entry Parcels Contracts
Direct Entry Parcels 1 (MC2009-26 and CP2009-36)
Global Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
Global Expedited Package Services (GEPS) Contracts
GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008-
18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23, and
CP2008-24)
Global Expedited Package Services 2 (CP2009-50)
Global Plus Contracts
Global Plus 1 (CP2008-8, CP2008-46 and CP2009-47)
Global Plus 2 (MC2008-7, CP2008-48 and CP2008-49)
Inbound International
Inbound Direct Entry Contracts with Foreign Postal
Administrations
Inbound Direct Entry Contracts with Foreign Postal
Administrations (MC2008-6, CP2008-14 and MC2008-15)
Inbound Direct Entry Contracts with Foreign Postal
Administrations 1 (MC2008-6 and CP2009-62)
International Business Reply Service Competitive Contract 1
(MC2009-14 and CP2009-20)
Competitive Product Descriptions
Express Mail
[Reserved for Group Description]
Express Mail
[Reserved for Product Description]
Outbound International Expedited Services
[Reserved for Product Description]
Inbound International Expedited Services
[Reserved for Product Description]
Priority
[Reserved for Product Description]
Priority Mail
[Reserved for Product Description]
Outbound Priority Mail International
[Reserved for Product Description]
Inbound Air Parcel Post
[Reserved for Product Description]
Parcel Select
[Reserved for Group Description]
Parcel Return Service
[Reserved for Group Description]
International
[Reserved for Group Description]
International Priority Airlift (IPA)
[Reserved for Product Description]
International Surface Airlift (ISAL)
[Reserved for Product Description]
International Direct Sacks--M-Bags
[Reserved for Product Description]
Global Customized Shipping Services
[Reserved for Product Description]
International Money Transfer Service
[Reserved for Product Description]
Inbound Surface Parcel Post (at non-UPU rates)
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
International Insurance
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Group Description]
Domestic
[Reserved for Product Description]
Outbound International
[Reserved for Group Description]
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]
[FR Doc. E9-29395 Filed 12-9-09; 8:45 am]
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