[Federal Register Volume 80, Number 3 (Tuesday, January 6, 2015)]
[Notices]
[Pages 539-540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30968]
[[Page 539]]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2015-23 and CP2015-29; Order No. 2314]
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 Global Expedited Package Services-Non-
Published Rates Contract 5 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: January 7, 2015.
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: 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 Nos. 630,\1\ 1625,\2\ and 1959,\3\ the Postal Service filed a
formal request and associated supporting information to add Global
Expedited Package Services-Non-Published Rates Contract 5 (GEPS-NPR 5)
to the competitive product list.\4\ The Postal Service states the
addition of GEPS-NPR 5 to the competitive products list is necessary
due to its creation of both a Management Analysis of the Prices and
Methodology for Determining Prices for Negotiated Service Agreements
under Global Expedited Package Services-Non-Published Rates 5 (GEPS-NPR
5 Management Analysis), and an accompanying financial model that
revises the previously filed GEPS-NPR 4 Version 2 Management Analysis
and its financial model. Request at 3.
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\1\ Docket No. CP2011-45, Order Adding Global Expedited Package
Services-Non-Published Rates 2 to the Competitive Product List,
December 30, 2010 (Order No. 630).
\2\ Docket Nos. MC2013-27 and CP2013-35, Order Adding Global
Expedited Package Services-Non-Published Rates 4 (GEPS-NPR 4) to the
Competitive Product List, January 16, 2013 (Order No. 1625).
\3\ Docket Nos. MC2013-27 and CP2014-22, Order Approving Change
in Prices for Global Package Services-Non-Published Rates 4 (GEPS-
NPR 4), January 10, 2014 (Order No. 1959).
\4\ Request of the United States Postal Service to Add Global
Expedited Package Services--Non-Published Rates 5 (GEPS--NPR 5) to
the Competitive Product List and Notice of Filing GEPS--NPR 5 Model
Contract and Application for Non-Public Treatment of Materials Filed
Under Seal, December 24, 2014 (Request).
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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 the Mail
Classification Schedule section 2510.8 GEPS-NPR;
Attachment 2C, a redacted version of GEPS-NPR 5 Management
Analysis;
Attachment 2D, a list of Maximum and Minimum Prices for
Priority Mail Express International (PMEI), and Priority Mail
International (PMI), and Global Express Guaranteed (GXG);
Attachment 2E, a certified statement concerning the prices
for applicable negotiated service agreements under GEPS-NPR 5, as
required by 39 CFR 3015.5(c)(2);
Attachment 3, a Statement of Supporting Justification,
similar to the Statement of Supporting Justifications used to support
the classification of GEPS-NPR 3 and GEPS-NPR 4, and which is filed
pursuant to 39 CFR 3020.32; and
Attachment 4, a redacted version of the GEPS-NPR 5 model
contract.
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.
Request, Attachment 3 at 1. She contends GEPS-NPR 5 belongs on the
competitive product list as it is part of a market over which the
Postal Service does not exercise market dominance,\5\ 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. Id. at 1, 3.
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\5\ The Postal Service claims it does not exercise sufficient
market power to set the price of PMEI, PMI, 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 4; 39
U.S.C. 3642(b).
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The Postal Service included a redacted version of the GEPS-NPR 5
model contract with the Request. Id. Attachment 4. The Postal Service
represents the GEPS-NPR 5 model contract is a slight modification of
the GEPS-NPR 4 Version 2 model contract approved by the Commission in
Order No. 1959.\6\
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\6\ See Order No. 1959.
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The Postal Service represents it will notify each GEPS-NPR 5
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. 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 11; id. Attachment 4.
The Postal Service filed much of the supporting materials,
including the related model contract, under seal. Request, Attachment
1. It maintains that the redacted portions of the materials should
remain confidential as sensitive business information. Id. at 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.
Id. 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 9.
II. Notice of Commission Action
The Commission establishes Docket Nos. MC2015-23 and CP2015-29 to
consider the Request pertaining to the proposed Global Expedited
Package Services--Non-Published Rates 5 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 January 7, 2015. The public
portions of these filings can be accessed via the Commission's Web site
(http://www.prc.gov).
The Commission appoints James F. Callow to serve as Public
Representative in these dockets.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. MC2015-23 and CP2015-29
to
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consider the matters raised in each docket.
2. Pursuant to 39 U.S.C. 505, James F. Callow 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 January 7, 2015.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-30968 Filed 1-5-15; 8:45 am]
BILLING CODE 7710-FW-P