Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations 17787 

Address Change Service (4.0), provides 

mailers who ship Package Services and 

Parcel Select parcels an option of paying 

forwarding postage instead of the 

addressee paying postage due charges. 

The addressee may refuse any specific 

piece of Package Services or Parcel 

Select that has been forwarded. 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR part 111 to reflect 

these changes. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. 2011–7405 Filed 3–30–11; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

39 CFR Part 111 

Market Dominant Negotiated Service 

Agreement (NSA) for First-Class Mail 

and Standard Mail 

AGENCY: Postal ServiceTM. 

ACTION: Final rule. 

SUMMARY: The Postal Service will revise 

the Mailing Standards of the United 

States Postal Service, Domestic Mail 

Manual (DMM®) 709.1, to establish a 

new Negotiated Service Agreement 

(NSA) Market Dominant product for 

First-Class Mail® and Standard Mail®

combined letter revenues. 

DATES: Effective June 6, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Gregory Dawson at 202–268–7446, Steve 

Monteith at 202–268–6983, or Yvonne 

Gifford at 202–268–8082. 

SUPPLEMENTARY INFORMATION: This new 

NSA for First-Class Mail and Standard 

Mail is based on the combined total 

revenue of First-Class Mail automation 

letters, Standard Mail automation 

letters, and Standard Mail carrier route 

barcoded automation-compatible letters. 

Background 

The 3-year agreement is designed to 

maintain and grow the total 

contribution the Postal Service receives 

from First-Class Mail and Standard Mail 

and to provide an incentive for net 

contribution growth beyond that. The 

agreement has five main components: A 

revenue threshold using a participantspecific baseline, a revenue threshold 

adjustment, a postage commitment, a 

rebate on First-Class Mail, and a rebate 

on Standard Mail. 

Revenue Threshold 

The revenue threshold is based on the 

amount of total postage paid for FirstClass Mail automation letters, Standard 

Mail automation letters, and Standard 

Mail carrier route barcoded automationcompatible letters. The baseline for the 

revenue threshold is the total postage 

for these categories over the previous 

one-year period. The threshold is 

calculated at a negotiated percentage 

above the baseline for each year during 

the duration of the agreement. 

Revenue Threshold Adjustment 

The revenue threshold will be 

adjusted upward by a negotiated 

amount for every dollar decline in FirstClass Mail postage. To qualify for 

rebates under this adjustment, a 

determined revenue amount of Standard 

Mail must be mailed to offset each 

dollar decline in postage from FirstClass Mail. 

Postage Commitment 

The agreement contains a postage 

commitment, equal to the adjusted 

revenue threshold or any subsequent 

yearly adjusted threshold. If the amount 

of total postage from eligible mail in the 

first year of the contract is less than the 

adjusted threshold, a penalty is assessed 

for the difference between the adjusted 

revenue threshold and the actual total 

postage paid for contract year one. 

Subsequent year penalties for failing to 

meet the adjusted revenue threshold are 

negotiated by the parties prior to the 

end of the current contract year. 

Rebates 

If the mailer holding the agreement 

meets or exceeds the adjusted postage 

thresholds in any given year of the 

contract, the mailer will earn a rebate on 

the qualifying First-Class Mail and 

Standard Mail postage. For First-Class 

Mail, the rebate will be equal to a 

negotiated percent of the increase in 

postage as a result of a subsequent 

cumulative price increase (relative to 

First-Class Mail prices in existence at 

the initiation of the agreement) for all 

qualifying pieces. For Standard Mail, 

the rebate will be equal to a negotiated 

percent of the increase in postage as a 

result of a subsequent cumulative price 

increase (relative to Standard Mail 

prices in existence at the initiation of 

the agreement) for all qualifying pieces. 

The NSA expires three years from the 

effective date. Either party can terminate 

the agreement, without penalty, for 

convenience, in the first nine months of 

any contract year provided the 

terminating party gives 90 days written 

notice prior to the planned termination 

date to the other party. 

In accordance with the Postal 

Accountability and Enhancement Act, 

on January 14, 2011, the Postal Service 

filed a Notice with the Postal Regulatory 

Commission (PRC) regarding the Market 

Dominant Negotiated Service 

Agreement (NSA) for First-Class Mail 

and Standard Mail and it was approved 

on March 15, 2011. 

The Postal Service adopts the 

following changes to Mailing Standards 

of the United States Postal Service, 

Domestic Mail Manual (DMM), 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR 111.1. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

Accordingly, 39 CFR Part 111 is 

amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

Part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– 

307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201– 

3219, 3403–3406, 3621, 3622, 3626, 3632, 

3633, and 5001. 

■ 2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) as follows: 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) 

* * * * * 

700 Special Standards 

* * * * * 

[Rename the title of section 709 as 

follows:] 

709 Negotiated Service Agreements 

and Experimental and Temporary 

Classifications 

* * * * * 

[Add new 1.4 as follows:] 

1.4 Market Dominant First-Class Mail 

and Standard Mail Letters NSAs 

1.4.1 Definition and Purpose 

The First-Class Mail and Standard 

Mail NSA is based on the combined 

total revenue of First-Class Mail 

automation letters, Standard Mail 

automation letters, and Standard Mail 

carrier route automation letters, and 

provides an incentive to encourage the 

growth of First-Class Mail. A baseline is 

determined from the revenue generated 

from First-Class Mail automation letters, 

Standard Mail automation letters, and 

Standard Mail carrier route barcoded 

automation-compatible letters that are 

mailed as and eligible for full-service 

Intelligent Mail prices (705.23) during a 

prior specified 12-month period of time. 

It includes a postage threshold that is 


jdjones on DSK8KYBLC1PROD with RULES_2
17788 Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations 

adjusted from the baseline to qualify for 

a rebate. If the adjusted revenue 

threshold is met, a rebate is generated 

on a percentage of the difference of an 

increase in postage as a result of a 

subsequent cumulative First-Class Mail 

and Standard Mail price increase related 

to the prices in existence at the time of 

the agreement. If the adjusted revenue 

threshold is not met, the NSA holder 

will pay a penalty. 

1.4.2 Candidate Factors and 

Requirements 

Potential participants must be IMb 

full-service customers with substantial, 

but declining First-Class Mail volumes 

and significant volumes of Standard 

Mail. Candidates must also meet the 

standards in 1.1 through 1.3 to qualify. 

The basic agreement comprises five 

components: 

a. Revenue threshold: Is based on the 

amount of total combined postage paid 

for First-Class Mail automation letters, 

Standard Mail automation letters, and 

Standard Mail carrier route barcoded 

automation-compatible letters. The 

baseline for the revenue threshold is the 

total postage for these categories over 

the previous one-year period. The 

threshold is calculated at a negotiated 

percentage above the baseline for each 

year during the duration of the 

agreement. 

b. Revenue threshold adjustment: Will 

be adjusted upward by a negotiated 

amount for every dollar decline in FirstClass Mail postage. To qualify for 

rebates under this adjustment, a predetermined revenue amount of Standard 

Mail must be mailed to offset each 

dollar decline in postage from FirstClass Mail. 

c. Postage commitment with penalty: 

The postage commitment is an amount 

equal to the adjusted revenue threshold. 

If the amount of total postage from 

eligible mail in the first year of the 

contract is less than the adjusted 

revenue threshold, a negotiated 

percentage penalty in the amount of the 

difference between the adjusted revenue 

threshold and the actual total postage 

paid for contract year one must be paid. 

Subsequent year penalties for failing to 

meet the adjusted revenue threshold are 

negotiated by the parties prior to the 

end of the current contract year. 

d. Rebate on First-Class Mail: If the 

mailer holding the agreement exceeds 

the adjusted revenue thresholds in any 

given year of the contract, it will earn 

rebates on its qualifying First-Class Mail 

postage. The rebate will be equal to a 

negotiated percent of the increase in 

postage as a result of a subsequent 

cumulative price increase (relative to 

First-Class Mail prices in existence at 

the initiation of the agreement) for all 

qualifying pieces. 

e. Rebate on Standard Mail: If the 

mailer holding the agreement exceeds 

the adjusted revenue thresholds in any 

given year of the contract, it will earn 

rebates on its qualifying Standard Mail 

postage. The rebate will be equal to a 

negotiated percent of the increase in 

postage as a result of a subsequent 

cumulative price increase (relative to 

Standard Mail prices in existence at the 

initiation of the agreement) for all 

qualifying pieces. 

1.4.3 General Requirements 

Any proposed First-Class Mail and 

Standard Mail NSA under this 

classification must also contain, at a 

minimum, the following general 

candidate requirements and conditions: 

a. The NSA expires three years from 

the effective date. Either party can 

terminate the agreement, without 

penalty, for convenience, in the first 

nine months of any contract year 

provided the terminating party gives 90 

days written notice prior to the planned 

termination date to the other party. 

b. The NSA will contain a merger and 

acquisition clause, which adjusts the 

threshold to account for increased 

mailing activity (or decreased, in the 

case of a sale or closure). 

1.4.4 Initial Proposal 

The proposal must explain how the 

candidate meets the requirements in 

1.4.2 and also must meet the following 

conditions: 

a. The candidate must submit a 

written proposal that includes 

appropriate supporting documentation 

to the USPS Manager of Correspondence 

& Transactions (see 608.8.0 for address). 

b. The proposal must be initiated by 

the mailer and include a summary of the 

information responding to the 

applicable candidate features and 

general requirements described in 1.4.3. 

c. A nondisclosure agreement must be 

signed before any substantive 

discussion of the proposal begins. 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR Part 111 to reflect 

these changes. 

Neva R. Watson, 

Attorney, Legislative. 

[FR Doc. 2011–7403 Filed 3–30–11; 8:45 am] 

BILLING CODE 7710–12–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 100201058–0260–02] 

RIN 0648–XA333 

Fisheries of the Northeastern United 

States; Spiny Dogfish Fishery; Annual 

Quota Harvested 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Temporary rule; closure of 

spiny dogfish fishery. 

SUMMARY: NMFS announces that the 

spiny dogfish commercial quota 

available to the coastal states from 

Maine through Florida for the 2010 

fishing year (FY), May 1, 2010–April 30, 

2011, has been harvested. Therefore, 

effective 0001 hours, April 1, 2011, 

federally permitted spiny dogfish 

vessels may not fish for, possess, 

transfer, or land spiny dogfish until May 

1, 2011, when the quota for FY 2011 

becomes available. Regulations 

governing the spiny dogfish fishery 

require publication of this notification 

to advise the coastal states from Maine 

through Florida that the quota has been 

harvested and to advise vessel permit 

holders and dealer permit holders that 

no Federal commercial quota is 

available for landing spiny dogfish in 

these states. This action is necessary to 

prevent the fishery from exceeding its 

annual quota and to allow for effective 

management of this stock. 

DATES: The spiny dogfish fishery is 

closed effective 0001 hr local time, 

April 1, 2011, through 2400 hr local 

time April 30, 2011. Effective April 1, 

2011, federally permitted dealers are 

also advised that they may not purchase 

spiny dogfish from federally permitted 

spiny dogfish vessels. 

FOR FURTHER INFORMATION CONTACT: 

Lindsey Feldman at (978) 675–2179, or 

Lindsey.Feldman@noaa.gov. 

SUPPLEMENTARY INFORMATION: 

Regulations governing the spiny dogfish 

fishery are found at 50 CFR part 648. 

The regulations require annual 

specification of a commercial quota, 

which is allocated into two quota 

periods based upon percentages 

specified in the fishery management 

plan. The fishery is managed from 

Maine through Florida, as described in 

§ 648.230. 

The total commercial quota for spiny 

dogfish for FY 2010 is 15 million lb 


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