[Federal Register Volume 78, Number 249 (Friday, December 27, 2013)]
[Notices]
[Pages 79023-79024]
From the Federal Register Online via the Government Publishing 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 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. 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 (http://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