[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Pages 6359-6360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01905]



[Docket No. MC2013-33 and CP2013-44; Order No. 1634]

New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.


SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Express Mail & Priority Mail Contract 12 to 
the competitive product list. This notice informs the public of the 
filing, invites public comment, and takes other administrative steps.

[[Page 6360]]

DATES: Comments are due: January 31, 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 

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.


Table of Contents

I. Introduction
II. Notice of Filings
III. 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 formal request and associated supporting 
information to add Express Mail & Priority Mail Contract 12 to the 
competitive product list.\1\ The Postal Service asserts that Express 
Mail & Priority Mail Contract 12 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. MC2013-33.

    \1\ Request of the United States Postal Service to Add Express 
Mail & Priority Mail Contract 12 to Competitive Product List and 
Notice of Filing (Under Seal) of Unredacted Governors' Decision, 
Contract, and Supporting Data, January 23, 2013 (Request).

    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39 
CFR 3015.5. Id. Attachment B. The instant contract has been assigned 
Docket No. CP2013-44.
    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, make a positive contribution to 
covering institutional 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 
does not appear to specify an effective date. Id. at 5; see Section 
III, infra. However, the contract is scheduled to expire 5 years from 
the effective date, unless, among other things, either party terminates 
the agreement with 30 days' written notice to the other party. Id. at 
6. The Postal Service represents that the contract is consistent with 
39 U.S.C. 3633(a). Id. Attachment D.
    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 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. MC2013-33 and CP2013-44 to 
consider the Request pertaining to the proposed Express Mail & Priority 
Mail Contract 12 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 January 31, 2013. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Kenneth R. Moeller to serve as Public 
Representative in these dockets.

III. Supplemental Information

    To clarify the record, the Postal Service is requested to provide a 
written response to the following question. An answer should be 
provided as soon as it is developed, but no later than January 29, 
2013. Many of the terms of the contract, including the termination date 
and the timing of price adjustments, are dependent on the effective 
date of the contract. Id. Attachment B. The contract does not appear to 
specify an effective date. Id. at 5. Please provide documentation 
establishing the effective date of the contract, as agreed to by the 
parties to the contract.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-33 and CP2013-44 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Kenneth R. Moeller is appointed to 
serve as an 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 January 31, 2013.
    4. The Postal Service's response to the request for supplemental 
information is due no later than January 29, 2013.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
[FR Doc. 2013-01905 Filed 1-29-13; 8:45 am]