[Federal Register Volume 74, Number 144 (Wednesday, July 29, 2009)]
[Pages 37739-37740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18029]



[Docket No. CP2009-53; Order No. 254]

Global Expedited Package Services Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.


SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add a Global Expedited Package Services 1 contract to the 
Competitive Product List. This notice addresses procedural steps 
associated with these filings.

DATES: Comments are due August 3, 2009.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 and [email protected].


I. Introduction
II. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    On July 22, 2009, the Postal Service filed a notice announcing that 
it has entered into an additional Global Expedited Package Services 1 
(GEPS 1) contract.\1\ GEPS 1 provides volume-based incentives for 
mailers that send large volumes of Express Mail International (EMI) 
and/or Priority Mail International (PMI). The Postal Service believes 
the instant contract is functionally equivalent to previously submitted 
GEPS 1 contracts, and is supported by the Governors' Decision filed in 
Docket No. CP2008-4.\2\ Notice at 1.

    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Expedited Package Services 1 
Negotiated Service Agreement, July 16, 2009 (Notice).
    \2\ See Docket No. CP2008-4, Notice of United States Postal 
Service of Governors' Decision Establishing Prices and 
Classifications for Global Expedited Package Services Contents, May 
20, 2008.

    It further notes that in Order No. 86, which established GEPS 1 as 
a product, the Commission held that additional contracts may be 
included as part of the GEPS 1 product if they meet the requirements of 
39 U.S.C. 3633, and if they are functionally equivalent to the initial 
GEPS 1 contract filed in Docket No. CP2008-5.\3\ Notice at 1.

    \3\ See Docket No. CP2008-5, Order Concerning Global Expedited 
Package Services Contracts, June 27, 2008, at 7 (Order No. 86).

    The instant contract. The Postal Service filed the instant contract 
pursuant to 39 CFR 3015.5. In addition, the Postal Service contends 
that the contract is in accordance with Order No. 86. The Postal 
Service states that the instant contract replaces the contract for the 
customer in Docket No. CP2008-12, which will end on August 31, 2009. 
Id. at 2. It submitted the contract and supporting material under seal, 
and attached a redacted copy of the contract and certified statement 
required by 39 CFR 3015.5(c)(2) to the Notice as Attachments 1 and 2, 
respectively. Id. at 1-2. The term of the instant contract is 1 year 
from the date the Postal Service notifies the customer that all 
necessary regulatory approvals have been received.
    The Notice advances reasons why the instant GEPS 1 contract fits 
within the Mail Classification Schedule language for GEPS 1. The Postal 
Service asserts that the instant contract is functionally equivalent to 
the GEPS 1 contracts filed previously. It states that in Governors' 
Decision No. 08-7, a pricing formula and classification system were 
established to ensure that each contract meets the statutory and 
regulatory requirements of 39 U.S.C. 3633. The Postal Service contends 
that the instant contract demonstrates its functional equivalence with 
the previous GEPS 1 contracts because of several factors: The customers 
are small or medium-sized businesses that mail directly to foreign 
destinations using EMI and/or PMI, the contract term of one year 
applies to all GEPS 1 contracts, the contracts have similar cost and 
market characteristics, and each requires payment through permit 
imprint. Id. at 4. It asserts that even though prices may be different 
based on volume or postage commitments made by the customers, or 
updated costing information, these differences do not affect the 
contracts' functional equivalency because the GEPS 1 contracts share 
similar cost attributes and methodology. Id. at 4-5.
    The Postal Service also identifies several other contractual 
differences including provisions that clarify the availability of other 
Postal Service products and services, exclude certain flat rate 
products from the mail qualifying for discounts, simplify mailing 
notice requirements, modify mail tender locations, clarify the mailer's 
volume and revenue commitment in the event of early termination, and 
change certain provisions in the prior contract in minor respects. Id. 
at 5-6.
    The Postal Service states that these differences related to a 
particular mailer are ``incidental differences'' and do not change the 
conclusion that these agreements are functionally equivalent in all 
important respects. Id. at 6.
    The Postal Service requests that this contract be included within 
the GEPS 1 product. Id. at 7.
    The Postal Service maintains that certain portions of the contract 
and certified statement required by 39 CFR 3015.5(c)(2), names of GEPS 
1 customers, related financial information, portions of the certified 
statement which contain costs and pricing as well as the accompanying 
analyses that provide prices, terms, conditions, and financial 
projections should remain under seal. Id. at 3.

[[Page 37740]]

II. Notice of Filing

    The Commission establishes Docket No. CP2009-53 for consideration 
of matters related to the contract identified in the Postal Service's 
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632, 
3622 or 3642. Comments are due no later than August 3, 2009. The public 
portions of these filings can be accessed via the Commission's Web site 
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in this proceeding.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2009-53 for 
consideration of the issues raised in this docket.
    2. Comments by interested persons in these proceedings are due no 
later than August 3, 2009.
    3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-18029 Filed 7-28-09; 8:45 am]