80 FR 63592 - New Postal Product

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 202 (October 20, 2015)

The Commission is noticing a recent Postal Service filing concerning the addition of Global Expedited Package Services--Non- Published Rates Contract 8 to the competitive product list. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63592-63593]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26548]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2016-5 and CP2016-5; Order No. 2751]


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 8 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: October 21, 2015.

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. 2558,\1\ the Postal Service filed a formal request and 
associated supporting information to add Global Expedited Package 
Services--Non-Published Rates Contract 8 (GEPS--NPR 8) to the 
competitive product list.\2\ The Postal Service states the addition of 
GEPS--NPR 8 to the competitive product list is necessary due to its 
creation of both a Management Analysis of the Prices and Methodology 
for Determining Prices for Negotiated Service Agreements under Global 
Expedited Package Services--Non-Published Rates 8 (GEPS--NPR 8 
Management Analysis), and an accompanying financial model that revises 
the previously filed GEPS--NPR 7 Management Analysis and its financial 
model. Request at 2-3.
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    \1\ Docket Nos. MC2015-55 and CP2015-83, Order Adding Global 
Expedited Package Services--Non-Published Rates 7 to the Competitive 
Product List, July 1, 2015, at 5-8 (Order No. 2558).
    \2\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 8 (GEPS-NPR 8) to 
the Competitive Products List and Notice of Filing GEPS-NPR 8 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, October 9, 2015 (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 the Mail 
Classification Schedule section 2510.8 GEPS-NPR;
     Attachment 2C, a redacted version of GEPS-NPR 8 Management 
Analysis;
     Attachment 2D, Maximum and Minimum Prices for Global 
Express Guaranteed (GXG), Priority Express Mail International (PMEI), 
Priority Mail International (PMI), and First-Class Package 
International (FCPIS) under GEPS-NPR 8 Contracts;
     Attachment 2E, the certified statement concerning the 
prices for applicable negotiated service agreements under GEPS-NPR 8, 
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 8 model 
contract. Id. at 3-4.
    In the 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. 
Request, Attachment 3 at 1. She contends GEPS--NPR 8 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, Attachment 3 
at 1.
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    \3\ The Postal Service claims it does not exercise sufficient 
market power to set the price of GXG, PMEI, PMI, and FCPIS 
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; 39 U.S.C. 3642(b).
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    The Postal Service included a redacted version of the GEPS--NPR 8 
model contract with the Request. Id. Attachment 4. The Postal Service 
represents the GEPS-NPR 8 model contract is similar to the GEPS--NPR 7 
model contract approved by the Commission in Order No. 2558. Request at 
6.
    The Postal Service represents it will notify each GEPS-NPR 8 
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 sooner, each contract will expire the later of one 
calendar year from its effective date or from the last day of the month 
in which its effective date falls. Id. The Postal Service represents 
that the contract is in compliance with 39 U.S.C. 3633(a). Request at 
4, 8; id. Attachment 3 at 2-3.
    The Postal Service filed much of the supporting materials, 
including an unredacted model contract, under seal. Request at 7. It 
maintains that the redacted portions of the materials should remain 
confidential as sensitive business information. Id. 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. Attachment 1 at 5-8. The Postal Service 
asks the Commission to protect customer-identifying information from 
public disclosure for 10 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. MC2016-5 and CP2016-5 to 
consider the Request pertaining to the proposed GEPS--NPR 8 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 October 21, 2015. The public 
portions of these filings can be accessed via the Commission's Web site 
(http://www.prc.gov).
    The Commission appoints JP Klingenberg to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:

[[Page 63593]]

    1. The Commission establishes Docket Nos. MC2016-5 and CP2016-5 to 
consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, JP Klingenberg 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 October 21, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-26548 Filed 10-19-15; 8:45 am]
 BILLING CODE 7710-FW-P