[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]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2016-97 and CP2016-122; Order No. 3156]
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 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 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 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.
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\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).
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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 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.
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\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).
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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
(http://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