[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Notices]
[Pages 13714-13715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-04611]
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POSTAL REGULATORY COMMISSION
[Docket No. MC2013-40 and CP2013-52; Order No. 1665]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recent Postal Service filing
concerning the addition of Priority Mail Contract 55 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 4, 2013.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Notice of Filings
III. Ordering Paragraphs
I. Introduction
In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the
Postal Service filed a formal request and associated supporting
information to add Priority Mail Contract 55 to the competitive product
list.\1\ It asserts that Priority Mail Contract 55 is a competitive
product ``not of general applicability'' within the meaning of 39
U.S.C. 3632(b)(3). Id. at 1. The Request has been assigned Docket No.
MC2013-40.
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract 55 to Competitive Product List and Notice of Filing
(Under Seal) of Unredacted Governors' Decision, Contract, and
Supporting Data, February 21, 2013 (Request).
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The Postal Service contemporaneously filed a redacted contract
related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. Id. Attachment B. The instant contract has been assigned
Docket No. CP2013-52.
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, make a positive contribution to
covering institutional 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 March 12, 2013. Id. at 4. The
contract will expire 3 years from the effective date unless, among
other things, either party terminates the agreement upon 30 days'
written notice to the other party. Id. The Postal Service represents
that the contract is consistent with 39 U.S.C. 3633(a). Id. Attachment
E.
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.
SUPPLEMENTARY INFORMATION: To clarify the record, the Postal Service is
requested to provide written responses to the following questions.
Answers should be provided to individual questions as soon as they are
developed, but no later than March 1, 2013.
1. In the contract, the First Year Prices for the Second Quarter
are based on the volume of the contract packages shipped during the
previous quarter. The relevant provision references a chart ``outlined
below.'' However, unlike the Third and Fourth Quarter Prices for the
First Year, no chart is outlined in section I.G.2. Please clarify how
the Second Quarter prices in the First Year will be determined. See id.
Attachment B at 2.
2. In section VI of the contract, an exception to the parties'
inability to amend the contract appears to have been intended. Please
clarify what was intended by this exception. See id. at 4.
3. In the contract, the First Year Prices for the Third Quarter are
based on the volume of the contract packages shipped during the First
Quarter rather than the Second Quarter. See id. at 2. Does this
language accurately reflect the intent of the parties? If not, should
that provision be modified to change First Quarter to Second Quarter?
[[Page 13715]]
II. Notice of Filings
The Commission establishes Docket Nos. MC2013-40 and CP2013-52 to
consider the Request pertaining to the proposed Priority Mail Contract
55 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 March 4, 2013. The
public portions of these filings can be accessed via the Commission's
Web site (http://www.prc.gov).
The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as
Public Representative in these dockets.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. MC2013-40 and CP2013-52
to consider the matters raised in each docket.
2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya 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 by interested persons in these proceedings are due no
later than March 4, 2013.
4. Responses by the Postal Service to the Commission's request for
supplemental information are due no later than March 1, 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. 2013-04611 Filed 2-27-13; 8:45 am]
BILLING CODE 7710-FW-P