New Postal Product, 79023-79024 [2013-30970]

Agencies

• POSTAL REGULATORY COMMISSION

[Federal Register Volume 78, Number 249 (Friday, December 27, 2013)]
[Notices]
[Pages 79023-79024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30970]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2014-11 and CP2014-15; Order No. 1918]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting the addition of Priority Mail Contract 73 to the competitive 
product list. This notice informs the public of the filing, invites 
public comment, and takes other administrative steps.

DATES: Comments are due: December 30, 2013.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Notice of Filings
III. Request for Supplemental Information
IV. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the 
Postal Service filed a request and associated supporting information to 
add Priority Mail Contract 73 to the competitive product list.\1\ The 
Postal Service asserts that Priority Mail Contract 73 is a competitive 
product ``not of general applicability'' within the meaning of 39 
U.S.C. 3632(b)(3). Request at 1. The Request has been assigned Docket 
No. MC2014-11.
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    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 73 to Competitive Product List and Notice of Filing 
(Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, December 19, 2013 (Request).
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    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product. Id. Attachment B. The instant 
contract has been assigned Docket No. CP2014-15.
    Request. To support its Request, the Postal Service filed six 
attachments as follows:
     Attachment A--a redacted copy of Governors' Decision No. 
11-6, authorizing the new product;
     Attachment B--a redacted copy of the contract;
     Attachment C--proposed changes to the Mail Classification 
Schedule competitive product list with the addition underlined;
     Attachment D--a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
     Attachment E--a certification of compliance with 39 U.S.C. 
3633(a); and
     Attachment F--an application for non-public treatment of 
materials to maintain redacted portions of the contract and related 
financial information under seal.
    In the Statement of Supporting Justification, Dennis R. Nicoski, 
Manager, Field Sales Strategy and Contracts, asserts that the contract 
will cover its attributable costs and increase contribution toward the 
requisite 5.5 percent of the Postal Service's total institutional 
costs. Id. Attachment D at 1. Mr. Nicoski contends that there will be 
no issue of market dominant products subsidizing competitive products 
as a result of this contract. Id.
    Related contract. The Postal Service included a redacted version of 
the related contract with the Request. Id. Attachment B. The contract 
is scheduled to become effective on ``January 10, 2014, after the 
Commission issues all necessary regulatory approval.'' Id. at 3. The 
contract will expire two years from the effective date unless, among 
other things, either party terminates the agreement upon 90 days' 
written notice to the other party or the contract is renewed by mutual 
written agreement. Id. The contract also allows two 90-day extensions 
of the agreement if the preparation of a successor agreement is active 
and the Commission is notified within at least seven days of the 
contract's expiration date. Id. The Postal Service represents that the 
contract is consistent with 39 U.S.C. 3633(a).\2\
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    \2\ Although the Request appears to state that the certification 
only pertains to paragraphs (1) and (3) of 39 U.S.C. 3633(a), the 
certification itself contains an assertion that the prices are in 
compliance with 39 U.S.C. 3633(a)(1), (2), and (3). See Request at 
2; Attachment E.
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    The Postal Service filed much of the supporting materials, 
including the related contract, under seal. Id. Attachment F. It 
maintains that the redacted portions of the Governors' Decision, 
contract, customer-identifying information, and related financial 
information should remain confidential. Id. at 3. This information 
includes the price structure, underlying costs and assumptions, pricing 
formulas, information relevant to the customer's mailing profile, and 
cost coverage projections. Id. The Postal Service asks the Commission 
to protect customer-identifying information from public disclosure 
indefinitely. Id. at 7.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2014-11 and CP2014-15 to 
consider the Request pertaining to the proposed Priority Mail Contract 
73 product and the related contract, respectively.
    Interested persons may submit comments on whether the Postal 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 3015.5, and 39 CFR 
part 3020, subpart B. Comments are due no later than December 30, 2013. 
The public portions of these filings can be accessed via the 
Commission's Web site (https://www.prc.gov).
    The Commission appoints Manon A. Boudreault to serve as Public 
Representative in these dockets.

III. Request for Supplemental Information

    Section I.F. of the contract provides that the contract ``will be 
measured and adjusted quarterly.'' Request, Attachment B at 2. The 
first contract

[[Page 79024]]

quarter begins on January 1. Id. Section I.H.2. of the contract appears 
to provide for an ``annual'' price adjustment ``following the First 
Year End Date.'' Id. at 3. In section I.H.1., the First Year End Date 
is defined as February 1, 2015. Id. at 2. The Postal Service is 
requested to (1) specify whether contract prices will be adjusted on a 
quarterly basis or an annual basis; (2) provide the date(s) on which 
the contract prices will be adjusted; and (3) provide a written 
amendment to the contract, if necessary. The Postal Service response is 
due no later than December 27, 2013.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2014-11 and CP2014-15 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Manon A. Boudreault is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in these proceedings.
    3. The response to the request for supplemental information is due 
no later than December 27, 2013.
    4. Comments by interested persons in these proceedings are due no 
later than December 30, 2013.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2013-30970 Filed 12-26-13; 8:45 am]
BILLING CODE 7710-FW-P