New Postal Product, 15355-15356 [2016-06344]

Agencies

• POSTAL REGULATORY COMMISSION

[Federal Register Volume 81, Number 55 (Tuesday, March 22, 2016)]
[Notices]
[Pages 15355-15356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06344]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2016-97 and CP2016-122; Order No. 3156]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Global Expedited Package Services--Non-
Published Rates Contract 10 to the competitive product list. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: March 23, 2016.

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: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., and 
Order No. 2967,\1\ the Postal Service filed a formal request and 
associated supporting information to add Global Expedited Package 
Services--Non-Published Rates Contract 10 (GEPS-NPR 10) to the 
competitive product list.\2\ The Postal Service states the addition of 
GEPS-NPR 10 to the competitive product list is necessary due to its 
revision of the Management Analysis of the Prices and Methodology for 
Determining Prices for Negotiated Service Agreements under Global 
Expedited Package Services--Non-

[[Page 15356]]

Published Rates 9 and accompanying financial model. Request at 3.
---------------------------------------------------------------------------

    \1\ Docket Nos. MC2016-46 and CP2016-61, Order Adding Global 
Expedited Package Services--Non-Published Rates Contract 9 (GEPS-NPR 
9) to the Competitive Product List, December 30, 2015, at 6-8 (Order 
No. 2967).
    \2\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 10 (GEPS-NPR 10) to 
the Competitive Products List and Notice of Filing GEPS-NPR 10 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, March 15, 2016 (Request).
---------------------------------------------------------------------------

    To support its Request, the Postal Service filed the following 
attachments:
     Attachment 1, an application for non-public treatment of 
materials filed under seal;
     Attachment 2A, a redacted version of Governors' Decision 
No. 11-6;
     Attachment 2B, a revised version of Mail Classification 
Schedule section 2510.8 GEPS-NPR;
     Attachment 2C, a redacted version of the GEPS-NPR 10 
Management Analysis;
     Attachment 2D, Maximum and Minimum Prices for Priority 
Express Mail International (PMEI), Priority Mail International (PMI), 
and Global Express Guaranteed (GXG); First-Class Package International 
Service (FCPIS); and International Merchandise Return Service (IMRS) 
prices under GEPS-NPR 10 Contracts;
     Attachment 2E, a certified statement concerning the prices 
for applicable negotiated service agreements under GEPS-NPR 10, 
required by 39 CFR 3015.5(c)(2);
     Attachment 3, a Statement of Supporting Justification, 
which is filed pursuant to 39 CFR 3020.32; and
     Attachment 4, a redacted version of the GEPS-NPR 10 model 
contract. Id. at 3-4.
    In a Statement of Supporting Justification, Giselle Valera, 
Managing Director and Vice President, Global Business, asserts the 
product is designed to increase efficiency of the Postal Service's 
process, as well as enhance its ability to compete in the marketplace. 
Id. Attachment 3 at 1.
    She contends GEPS-NPR 10 belongs on the competitive product list as 
it is part of a market over which the Postal Service does not exercise 
market dominance,\3\ is not subsidized by market dominant products, 
covers costs attributable to it, and does not cause competitive 
products as a whole to fail to make the appropriate contribution to 
institutional costs. Request at 3.
---------------------------------------------------------------------------

    \3\ The Postal Service claims it does not exercise sufficient 
market power to set the price of PMEI, PMI, FCPIS, and GXG 
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. Id. at 
3-4; see 39 U.S.C. 3642(b).
---------------------------------------------------------------------------

    The Postal Service included a redacted version of the GEPS-NPR 10 
model contract with the Request. Id. Attachment 4. The Postal Service 
represents the GEPS-NPR 10 model contract is a slight modification of 
the GEPS-NPR 9 model contract approved by the Commission in Order No. 
2967. See Request at 3.
    The Postal Service represents it will notify each GEPS-NPR 10 
customer of the contract's effective date no later than 30 days after 
receiving the signed agreement from the customer. Id. Attachment 4 at 
4. Unless terminated earlier, each contract will expire the later of 
one year from the effective date or the last day of the month which 
falls one calendar year from the effective date, unless terminated 
sooner. Id. The Postal Service represents that the contract is 
consistent with 39 U.S.C. 3633(a). Request at 5; id. Attachment 2E; id. 
Attachment 3 at 2-3.
    The Postal Service filed much of the supporting materials, 
including an unredacted model contract, under seal. Request at 3. It 
maintains that the redacted portions of the materials should remain 
confidential as sensitive business information. Id. Attachment 1 at 1-
2, 4. This information includes sensitive commercial information 
concerning the incentive discounts and their formulation, applicable 
cost coverage, non-published rates, as well as some customer-
identifying information in future signed agreements. Id. at 4-5. The 
Postal Service asks the Commission to protect customer-identifying 
information from public disclosure for ten years after the date of 
filing with the Commission, unless an order is entered to extend the 
duration of that status. Id. at 11.

II. Notice of Commission Action

    The Commission establishes Docket Nos. MC2016-97 and CP2016-122 to 
consider the Request pertaining to the proposed GEPS-NPR 10 product and 
the related model contract, respectively.
    The Commission invites 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 part 3015, and 39 CFR part 3020, 
subpart B. Comments are due no later than March 23, 2016. The public 
portions of these filings can be accessed via the Commission's Web site 
(https://www.prc.gov).
    The Commission appoints Katalin K. Clendenin to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2016-97 and CP2016-122 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is appointed to 
serve as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    3. Comments are due no later than March 23, 2016.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016-06344 Filed 3-21-16; 8:45 am]
BILLING CODE 7710-FW-P