[Federal Register Volume 74, Number 182 (Tuesday, September 22, 2009)]
[Pages 48323-48324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22692]



[Docket Nos. MC2009-42 and CP2009-63; Order No. 298]

New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.


SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Priority Mail Contract 18 to the Competitive Product 
List. The Postal Service has also filed a related contract. This notice 
addresses procedural steps associated with these filings.

DATES: Responses to the supplemental information request are due 
September 21, 2009; comments are due September 23, 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, 
at 202-789-6829 or [email protected].
    Regulatory History: 74 FR 31374.


I. Introduction
II. Notice of Filings
III. Supplemental Information
IV. Ordering Paragraphs

I. Introduction

    On September 11, 2009, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority 
Mail Contract 18 to the Competitive Product List.\1\ The Postal Service 
asserts that Priority Mail Contract 18 is a competitive product ``not 
of general applicability'' within the meaning of 39 U.S.C. 3632(b)(3). 
The Postal Service states that prices and classification underlying 
this contract are supported by Governors' Decision No. 09-6 in Docket 
No. MC2009-25. Id. at 1. The Request has been assigned Docket No. 

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 18 to Competitive Product List, September 11, 2009 

    The Postal Service contemporaneously filed a contract related to 
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 
3015.5. The contract has been assigned Docket No. CP2009-63.
    Request. In support of its Request, the Postal Service filed the 
following materials: (1) A redacted version of the Governors' Decision, 
filed in Docket No MC2009-25, authorizing the Priority Mail Contract 
Group;\2\ (2) a redacted version of the contract;\3\ (3) a requested 
change in the Mail Classification Schedule product list;\4\ (4) a 
Statement of Supporting Justification as required by 39 CFR 3020.32;\5\ 
(5) a certification of compliance with 39 U.S.C. 3633(a);\6\ and (6) an 
application for nonpublic treatment of the materials filed under 

    \2\ Attachment A to the Request, reflecting Governors' Decision 
No. 09-6, April 27, 2009.
    \3\ Attachment B to the Request.
    \4\ Attachment C to the Request.
    \5\ Attachment D to the Request.
    \6\ Attachment E to the Request.
    \7\ Attachment F to the Request.

    In the Statement of Supporting Justification, Mary Prince Anderson, 
Acting Manager, Sales and Communications, Expedited Shipping, asserts 
that the service to be provided under the contract will cover its 
attributable costs, make a positive contribution to institutional 
costs, and increase contribution toward the requisite 5.5 percent of 
the Postal Service's total institutional costs. Id., Attachment D. 
Thus, Ms. Anderson contends there will be no issue of subsidization of 
competitive products by market dominant products as a result of this 
contract. Id.
    Related contract. A redacted version of the specific Priority Mail 
Contract 18 is included with the Request. The new contract purports to 
supersede in part a prior contract for Express Mail and Priority Mail 
solely with respect to Priority Mail. Attachment B at 1. The Postal 
Service will provide the shipper with new customized pricing for 
eligible Priority Mail items shipped by the shipper, as well as 
Priority Mail packaging. The shipper will manifest pieces eligible for 
customized pricing, using a separate permit number to ship such pieces, 
and will use the Electronic Verification System (eVS) for shipments of 
such pieces. Id. Annual price adjustments will be applied to the 
shipper's eligible mailpieces.
    The new agreement will become effective on the day that the 
Commission provides all necessary regulatory approvals. Id. at 3. It is 
terminable upon 30 days' notice by either party, but could continue 
until March 11, 2012 without modification,

[[Page 48324]]

except as to price adjustments. See id. The Postal Service represents 
that the new contract is consistent with 39 U.S.C. 3633(a). See id., 
Attachment E.
    The existing contract's terms and conditions for Express Mail 
remain in effect.
    The Postal Service filed much of the supporting materials, 
including the specific Priority Mail Contract 18, under seal. In its 
Request, the Postal Service maintains that the contract and related 
financial information, including the customer's name and the 
accompanying analyses that provide prices, terms, conditions, cost 
data, and financial projections should remain under seal. Id. at 2. It 
also requests that the Commission order that the duration of such 
treatment of all customer identifying information be extended 
indefinitely, instead of ending after ten years. Id., Attachment F, at 
1 and 7.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2009-42 and CP2009-63 for 
consideration of the Request pertaining to the proposed Priority Mail 
Contract 18 product and the related contract, respectively. In keeping 
with practice, these dockets are addressed on a consolidated basis for 
purposes of this Order; however, future filings should be made in the 
specific docket in which issues being addressed pertain.
    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 and 39 CFR part 3015 and 39 
CFR 3020 subpart B. Comments are due no later than September 23, 2009. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

III. Supplemental Information

    The Commission requests the Postal Service to provide the following 
supplemental information regarding the new agreement by September 21, 
    1. Please explain if the spreadsheets filed on February 20, 2009 
need to be revised to reflect the modifications in the current 
spreadsheets, and clarify whether all volumes, weight, and cubic feet 
figures are actual shipper's data.
    2. Please verify that the existing contract, as revised, still 
complies with 39 U.S.C. 3633(a).

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2009-42 and CP2009-63 
for consideration of the matter raised in each docket.
    2. 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.
    3. Comments by interested persons in these proceedings are due no 
later than September 23, 2009.
    4. Responses to the supplemental information request are due by 
September 21, 2009.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Issued September 15, 2009.

    By the Commission.
Shoshana M. Grove,
[FR Doc. E9-22692 Filed 9-21-09; 8:45 am]