80 FR 80820 - New Postal Product

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 248 (December 28, 2015)

The Commission is noticing a recent Postal Service filing concerning the addition of Global Expedited Package Services--Non- Published Rates Contract 9 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 248 (Monday, December 28, 2015)]
[Notices]
[Pages 80820-80821]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32532]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2016-46 and CP2016-61; Order No. 2909]


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 9 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: December 29, 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. 2774,\1\ the Postal Service filed a formal request and 
associated supporting information to add Global Expedited Package 
Services--Non-Published Rates Contract 9 (GEPS--NPR 9) to the 
competitive product list.\2\ The Postal Service states the addition of 
GEPS--NPR 9 to the competitive product list is necessary due to its 
creation of a Management Analysis of the Prices and Methodology for 
Determining Prices for Negotiated Service Agreements under Global 
Expedited Package Services--Non-Published Rates 9 (GEPS--NPR 9 
Management Analysis), and an accompanying financial model that revises 
the previously filed Global Expedited Package Services--Non-Published 
Rates Contract 8 (GEPS--NPR 8) Management Analysis and its financial 
model. Request at 2-3.
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    \1\ Docket Nos. MC2016-5 and CP2016-5, Order Adding Global 
Expedited Package Services--Non-Published Rates Contract 8 to the 
Competitive Product List, October 23, 2015, at 7 (Order No. 2774).
    \2\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 9 (GEPS--NPR 9) to 
the Competitive Products List and Notice of Filing GEPS--NPR 9 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, December 18, 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 9 
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 9 Contracts;
     Attachment 2E, the certified statement concerning the 
prices for applicable negotiated service agreements under GEPS--NPR 9, 
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 9 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 
processes, as well as enhance its ability to compete in the 
marketplace. Request, Attachment 3 at 1. She contends GEPS--NPR 9 
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. See id. 
at 3-4; see also 39 U.S.C. 3642(b).
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    The Postal Service included a redacted version of the GEPS--NPR 9 
model contract with the Request. Id. Attachment 4. The Postal Service 
represents the GEPS--NPR 9 model contract is similar to the GEPS--NPR 8 
model contract approved by the Commission in Order No. 2774. Request at 
6.
    The Postal Service represents it will notify each GEPS--NPR 9 
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 one calendar 
year from its effective date (if the effective date is the first of the 
month) or from the last day of the month in which its effective date 
falls (if the effective date is not the first of the month). Id. The 
Postal Service represents that the contract is in compliance with 39 
U.S.C. 3633. Request at 4, 9; id. Attachment 3 at 2-3.
    The Postal Service filed much of the supporting materials, 
including an unredacted model contract, under seal. Request at 8. It 
maintains that the

[[Page 80821]]

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 4-8. 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. MC2016-46 and CP2016-61 to 
consider the Request pertaining to the proposed GEPS--NPR 9 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 December 29, 2015. The public 
portions of these filings can be accessed via the Commission's Web site 
(http://www.prc.gov).
    The Commission appoints Curtis E. Kidd to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2016-46 and CP2016-61 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Curtis E. Kidd 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 December 29, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2015-32532 Filed 12-24-15; 8:45 am]
 BILLING CODE 7710-FW-P