[Federal Register Volume 76, Number 37 (Thursday, February 24, 2011)]
[Notices]
[Pages 10410-10411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4055]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2011-21 and CP2011-59; Order No. 674]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add International Business Reply Service (IBRS) Competitive 
Contract 3 to the competitive product list. The Postal Service also 
states that it has entered into an additional IBRS contract, which is 
the successor to an IBRS 2 contract.

DATES: Comments are Due: February 22, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in FOR FURTHER INFORMATION CONTACT 
section as the source for case-related information for advice on 
alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (case-related information) or <a href="/cdn-cgi/l/email-protection#9dd9f2fef6f8e9dcf9f0f4f3eeddedeffeb3faf2eb"><span class="__cf_email__" data-cfemail="490d262a222c3d082d2420273a09393b2a672e263f">[email protected]</span></a> 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    On February 11, 2011, the Postal Service filed a request pursuant 
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add International 
Business Reply Service (IBRS) Competitive Contract 3 to the competitive 
product list and announcing that it has entered into an additional IBRS 
contract, which is the successor to an IBRS 2 contract.\1\ The Postal 
Service asserts that the new IBRS Competitive Contract 3 product 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. MC2011-21.
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    \1\ Request of the United States Postal Service to Add 
International Business Reply Service Competitive Contract 3 to the 
Competitive Products List and Notice of Filing of Contract (Under 
Seal), February 11, 2011 (Request).
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    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product pursuant to 39 U.S.C. 3632(b)(3) 
and 39 CFR 3015.5. Id. Attachment 2. The contract is assigned Docket 
No. CP2011-59.

[[Page 10411]]

    The Postal Service uses IBRS contracts for customers that sell 
lightweight articles to foreign consumers and desire to offer their 
customers a way to return the articles to the United States for 
recycling, refurbishment, repair, or value-added processing. Id. at 4-
5.
    The instant contract. The Postal Service filed the instant contract 
pursuant to 39 CFR 3015.5. In addition, the Postal Service contends 
that the contract is in accordance with Order No. 290.\2\ The term of 
the instant contract is 1 year from the date the Postal Service 
notifies the customer that all necessary regulatory approvals have been 
received. The agreement expires 1 year after the effective date unless 
the parties agree to an earlier termination. The Postal Service states 
that the instant contract is the successor agreement to the IBRS 
Competitive Contract 2 contract in Docket No. CP2010-21 for the same 
mailer.\3\ Request at 3. The Postal Service notes that the current 
contract expires on February 28, 2011 and its intent is to have the 
instant contract begin March 1, 2011. Id. at 4.
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    \2\ See Docket No. CP2009-50, Order Granting Clarification and 
Adding Global Expedited Package Services 2 to the Competitive 
Product List, August 28, 2009 (Order No. 290).
    \3\ See Docket Nos. MC2010-18, CP2010-21 and CP2010-22, Notice 
of the United States Postal Service of Filing Two Functionally 
Equivalent IBRS Contracts and Request to Establish Successor 
Instruments as Baseline International Business Reply Service 
Competitive Contract 2, February 9, 2010.
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    In support of its Request, the Postal Service filed the following 
attachments:
    <bullet> Attachment 1--a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
    <bullet> Attachment 2--a redacted copy of the contract;
    <bullet> Attachment 3--a redacted copy of the certified statement 
required by 39 CFR 3015.5(c)(2);
    <bullet> Attachment 4--Governors' Decision No. 08-24 which 
establishes prices and classifications for the IBRS Contracts product; 
and includes Mail Classification Schedule (MCS) language for IBRS 
contracts, formulas for pricing along with an analysis, certification 
of the Governors vote, and certification of compliance with 39 U.S.C. 
3633 (a); and
    <bullet> Attachment 5--an application for non-public treatment of 
materials to maintain the redacted portions of the contract, customer 
identifying information and related financial information under seal.
    In the Statement of Supporting Justification, Jo Ann Miller, former 
Director, Global Business Development, asserts that the services to be 
provided under the instant contract will cover its attributable costs, 
make a positive contribution to institutional costs, and increase 
contribution toward the requisite 5.5 percent of total institutional 
costs charged to competitive products.\4\ Id. Attachment 1. Thus, Ms. 
Miller contends there will be no issue of subsidization of competitive 
products by market dominant products as a result of these contracts. 
Id.
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    \4\ The Postal Service states that the statement provided by Jo 
Ann Miller, originally filed in Docket No. MC2009-14 is applicable 
to the instant proceeding and supports the addition of IBRS 
Competitive Contract 3 to the competitive product list.
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    Baseline agreement. The Postal Service requests that the instant 
contract be deemed the new baseline agreement for functional 
equivalency analyses of the IBRS product.\5\ Id. at 2-4. The Postal 
Service asserts that the instant contract is essentially the same as 
the IBRS contracts filed previously. Id. at 4. The Postal Service 
represents that prices and classifications ``not of general 
applicability'' for IBRS contracts were established by Governors' 
Decision No. 08-24 filed in Docket Nos. MC2009-14 and CP2009-20.\6\ It 
also identifies the instant contract as fitting within the MCS language 
for IBRS contracts included as an attachment to Governors' Decision No. 
08-24. Id. at 2.
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    \5\ The Postal Service states that it does not intend to remove 
the IBRS Competitive Contract 2 from the competitive product list at 
this time.
    \6\ See Order No. 178, Order Concerning International Business 
Reply Service Contract 1 Negotiated Service Agreement, Docket Nos. 
MC2009-14 and CP2009-14, February 5, 2009.
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    The Request advances reasons why IBRS Competitive Contracts 3 
should be added to the competitive product list and fits within the MCS 
language for IBRS contracts. Id. at 4-5. The Postal Service also 
explains that a redacted version of the supporting financial 
documentation is included with this filing as a separate Excel file. 
Id. at 3.
    The Postal Service asserts that the instant contract is in 
compliance with 39 U.S.C. 3633, is functionally equivalent to other 
IBRS agreements, fits within the MCS language for IBRS contracts, will 
serve as the new baseline contract for the proposed product, and should 
be added to the competitive product list included within the IBRS 
Competitive Contracts 3 product. Id. at 5-6. Accordingly, it urges the 
Commission to add the proposed IBRS Competitive Contract 3 to the 
competitive product list along with the instant contract as the 
baseline agreement within the product. Id. at 6.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2011-21 and CP2011-59 for 
consideration of matters identified in the Postal Service's Request.
    The Commission appoints Diane K. Monaco to serve as Public 
Representative in these dockets.
    Comments. 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 part 3020 subpart B. Comments are due no later than February 22, 
2011. The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2011-21 and CP2011-59 
for consideration of the matters raised in these dockets.
    2. Pursuant to 39 U.S.C. 505, Diane K. Monaco 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 February 22, 2011.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-4055 Filed 2-23-11; 8:45 am]
BILLING CODE 7710-FW-P


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