[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Pages 13714-13715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-04611]



[Docket No. MC2013-40 and CP2013-52; Order No. 1665]

New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.


SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Priority Mail Contract 55 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 4, 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. 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 Priority Mail Contract 55 to the competitive product 
list.\1\ It asserts that Priority Mail Contract 55 is a competitive 
product ``not of general applicability'' within the meaning of 39 
U.S.C. 3632(b)(3). Id. at 1. The Request has been assigned Docket No. 

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract 55 to Competitive Product List and Notice of Filing 
(Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, February 21, 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. CP2013-52.
    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 
is scheduled to become effective on March 12, 2013. Id. at 4. The 
contract will expire 3 years from the effective date unless, among 
other things, either party terminates the agreement upon 30 days' 
written notice to the other party. Id. The Postal Service represents 
that the contract is consistent with 39 U.S.C. 3633(a). Id. Attachment 
    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 Governors' Decision, 
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.

SUPPLEMENTARY INFORMATION: To clarify the record, the Postal Service is 
requested to provide written responses to the following questions. 
Answers should be provided to individual questions as soon as they are 
developed, but no later than March 1, 2013.
    1. In the contract, the First Year Prices for the Second Quarter 
are based on the volume of the contract packages shipped during the 
previous quarter. The relevant provision references a chart ``outlined 
below.'' However, unlike the Third and Fourth Quarter Prices for the 
First Year, no chart is outlined in section I.G.2. Please clarify how 
the Second Quarter prices in the First Year will be determined. See id. 
Attachment B at 2.
    2. In section VI of the contract, an exception to the parties' 
inability to amend the contract appears to have been intended. Please 
clarify what was intended by this exception. See id. at 4.
    3. In the contract, the First Year Prices for the Third Quarter are 
based on the volume of the contract packages shipped during the First 
Quarter rather than the Second Quarter. See id. at 2. Does this 
language accurately reflect the intent of the parties? If not, should 
that provision be modified to change First Quarter to Second Quarter?

[[Page 13715]]

II. Notice of Filings

    The Commission establishes Docket Nos. MC2013-40 and CP2013-52 to 
consider the Request pertaining to the proposed Priority Mail Contract 
55 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 March 4, 2013. The 
public portions of these filings can be accessed via the Commission's 
Web site (http://www.prc.gov).
    The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as 
Public Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-40 and CP2013-52 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is 
appointed to serve as an officer of the Commission to represent the 
interests of the general public in these proceedings (Public 
    3. Comments by interested persons in these proceedings are due no 
later than March 4, 2013.
    4. Responses by the Postal Service to the Commission's request for 
supplemental information are due no later than March 1, 2013.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2013-04611 Filed 2-27-13; 8:45 am]