9958 Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 

1 Docket No. PI2021–1, Order Granting Motion to 

Disclose Methodological Information and to Adjust 

Procedural Schedule, January 21, 2021 (Order No. 

5821). 

2The mailbox monopoly is the Postal Service’s 

exclusive right to deliver to and collect from 

mailboxes. The letter monopoly is the Postal 

Service’s exclusive right to carry and deliver most 

addressed, paper-based correspondence. The 

combined letter and mailbox monopolies are 

together referred to as the postal monopoly. 

Subtracting the value of the mailbox monopoly 

from the value of the postal monopoly does not 

yield the value of the letter monopoly because there 

is overlap in the contestable mail and a different 

frequency of delivery by the competitor. Without 

access to mailboxes, it is unlikely that the 

competitor could successfully capture mail directed 

to a specific person or address because those pieces 

are delivered to and collected from mailboxes. 

Therefore, a separate estimate of the value of the 

letter monopoly alone (retaining the mailbox 

monopoly) is not calculated. 

offers the health plan carriers, general 

public and other federal agencies the 

opportunity to comment on the carrier 

application for participating in the 

Federal Employees Health Benefits 

(FEHB) Program. The requirements that 

must be met by carriers seeking to 

participate (and remain) in the FEHB 

Program are set forth in the stature and 

regulations. 

DATES: Comments are encouraged and 

will be accepted until April 19, 2021. 

ADDRESSES: You may submit comments, 

identified by docket number and/or 

Regulatory Information Number (RIN) 

and title, by the following method: 

Federal Rulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

All submissions received must 

include the agency name and docket 

number or RIN for this document. The 

general policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing at http://

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: A 

copy of this ICR, with applicable 

supporting documentation, may be 

obtained by contacting the Office of 

Personnel Management, 1900 E Street 

NW, Washington, DC 20415, Attention: 

Michael W Kaszynski, Senior Policy 

Analyst, Healthcare and Insurance at 

Michael.Kaszynski@opm.gov or (202) 

606–2128. 

SUPPLEMENTARY INFORMATION: As 

required by the Paperwork Reduction 

Act of 1995, (Pub. L. 104–13, 44 U.S.C. 

chapter 35) as amended by the ClingerCohen Act (Pub. L. 104–106), OPM is 

soliciting comments for this collection. 

The Office of Management and Budget 

is particularly interested in comments 

that: 

1. Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

2. Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

3. Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

4. Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submissions 

of responses. 

OPM uses the application to 

determine if carriers meet the 

requirements set forth in the statute and 

regulations governing the FEHB. On the 

application, OPM collects information 

from applicants regarding their 

solvency, marketing and enrollment, 

health care delivery and covered 

services, utilization controls and quality 

assurance, and other general 

information and certifications. OPM 

uses this information to determine if the 

applicant is qualified to participate in 

the FEHB Program. 

Analysis 

Agency: Healthcare and Insurance, 

Office of Personnel Management. 

Authority: 5 U.S.C. 8903(4). 

Title: Application To Participate as a 

Carrier Under 5 U.S.C. 8903(4). 

OMB Number: 3206–0145. 

Reinstatement, with change, of a 

previously approved collection. 

Frequency: Annually. 

Affected Public: Health plan carriers 

applying for participation in the FEHB 

Program. 

Number of Respondents: 5. 

Estimated Time per Respondent: 100 

hours. 

Total Burden Hours: 500 hours. 

Office of Personnel Management. 

Alexys Stanley, 

Regulatory Affairs Analyst. 

[FR Doc. 2021–03166 Filed 2–16–21; 8:45 am] 

BILLING CODE 6325–64–P 

POSTAL REGULATORY COMMISSION 

[Docket No. PI2020–1; Order No. 5832] 

Public Inquiry 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission, in response 

to a motion by the Postal Service, 

notices its filing of a detailed 

explanation of its current Universal 

Service Obligation (USO) valuation 

methodology, including workpapers 

showing the calculations underlying the 

Commission’s most recent USO 

valuation. The Commission has 

determined that providing the 

documentation of its current monopoly 

valuation methodology, including 

supporting workpapers, would be 

equally valuable to interested persons 

seeking to comment in this docket. This 

document informs the public of this 

proceeding and the technical 

conference, invites public comment, 

and takes other administrative steps. 

DATES: Comments are due: March 26, 

2021. 

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: In Docket 

No. PI2021–1 and in response to a 

motion by the Postal Service, the 

Commission notices its filing of a 

detailed explanation of its current 

Universal Service Obligation (USO) 

valuation methodology, including 

workpapers showing the calculations 

underlying the Commission’s most 

recent USO valuation.1 The Commission 

has determined that providing the 

documentation of its current monopoly 

valuation methodology, including 

supporting workpapers, would be 

equally valuable to interested persons 

seeking to comment in this docket. 

Library Reference PRC–LR–PI2020–1– 

NP1 (filed under seal) consists of the 

SAS programs, datasets, input 

workbooks and output files used to 

develop the FY 2018 and FY 2019 postal 

and mailbox monopolies estimates.2 In 

addition, the Library Reference includes 

a Word document describing these files, 

processing instructions and their use, as 

well as the various output files 

produced. 

As such, the Commission is providing 

public notice of filing its Analysis of the 

Value of the Postal and Mailbox 

Monopolies (Library Reference PRC– 

LR–PI2020–1–NP1). 


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Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 9959 

3See Report on Universal Postal Service and the 

Postal Monopoly, December 19, 2008 (2008 USO 

Report). Additionally, the Commission filed 

Appendices and Workpapers attached as zip files. 

See folder ‘‘Appendices,’’ folder ‘‘USO 

Appendices,’’ PDF file ‘‘Appendix F Section 4.pdf’’ 

(Quantitative Analysis of the Value of the Postal 

and Mailbox Monopolies, Robert H. Cohen) and 

folder ‘‘Workpapers and Data Files Appendix 

F4.zip.’’ The files included with the FY 2018 and 

FY 2019 PRC–LR–PI2020–1–NP1 Library Reference 

mimic the same structure (where applicable) and 

purpose of the SAS programs and datasets as well 

as the input and output workbooks provided in the 

2008 USO Report ‘‘Workpapers and Data Files 

Appendix F4.zip’’ folder ‘‘Workpapers and Data 

Files Appendix F4.’’ 

4For example, the City Carrier Cost System 

(CCCS) sampling design change described in Docket 

No. ACR2008, Library Reference USPS–FY08–34, 

December 30, 2008, PDF file ‘‘USPS–FY08–34_

CCCS_Final.pdf,’’ at 1. Additionally, to improve 

efficiency, the rural product distribution keys 

development was automated in the methodology 

after the 2008 Report. 

5The FY 2007 CCCS data set had bucket number 

23 mail volume as ‘‘Parcel Post.’’ See Docket No. 

ACR2007, Library Reference USPS–FY07–28, 

December 28, 2007, file ‘‘USPS_FY07_28_CCCS_

Final.doc, at 12; Workpapers and Data Files 

Appendix F4, file ‘‘SAS program ‘‘CCS07_

newwts1.sas.’’ 

6See 2008 USO Report, Workpapers and Data 

Files Appendix F4, Excel file ‘‘contestable_vol_est_

120708.xls,’’ tab ‘‘FY07.’’ A note is included in tab 

‘‘FY07,’’ line 11, ‘‘Note: used .523 (ratio of DDU/ 

Tot PP in R2006–1) x 349 mil (FY07 Tot PP RPW).’’ 7The United States Postal Service Office of 

Inspector General states that ‘‘Parcel Post has 

evolved into a diverse set of package delivery 

services that are integral to the Nation’s lifestyle 

and commerce, including Priority Mail, Parcel 

Select, which allows mailers to enter discounted 

packages deep within the U.S. Postal Service’s 

network, and Standard Post, Parcel Post’s direct 

descendant.’’ See United States Postal Service 

Office of Inspector General White Paper, Report No. 

RARC–WP–14–004, 100 Years of Parcel Post, 

December 20, 2013, at ii, available at: https://

www.uspsoig.gov/sites/default/files/documentlibrary-files/2015/rarc-wp-14-004_0.pdf. 

8See Docket No. ACR2019, Library Reference 

USPS–FY19–NP22, December 27, 2019, PDF file 

‘‘USPS–FY19_NP22_CCCS_Preface.pdf,’’ at 37–38; 

Library Reference USPS–FY19–NP23, December 27, 

2019, PDF file ‘‘USPS–FY19–NP23_RCCS_

Preface.pdf,’’ at 22–23: bucket numbers 123 (FirstClass Package), 420 (Parcel Select), 430 (Parcel 

Select Lightweight), 460 (Retail Ground/Standard 

Post). The ‘‘d23’’ percentage of contestable mail is 

based on the number of Parcel Select and Parcel 

Select Lightweight packages dropshipped (data 

source from the billing determinants) at the DDU. 

See Library Reference PRC–LR–PI2020–1–NP1, 

Excel file ‘‘Contestable_2019.xlsx,’’ tabs ‘‘FY 19,’’ 

‘‘FY 19 Contestable,’’ and ‘‘19Parcel Select.’’ 

Overview of Current Changes to 

Original Monopolies Methodology 

SAS Programs Changes, Input 

Workbooks Changes and Other Material 

Methodological Changes (FY 2018 and 

FY 2019 Monopolies Estimates) 

To the extent possible, the 

Commission attempted to update and 

replicate nearly all aspects of the 

original methodology.3 Out of necessity, 

the original SAS programming code was 

modified to accommodate or 

incorporate changes in the data sources 

such as new product codes or other time 

or mail volume changes.4

The original monopoly methodology 

had ‘‘Parcel Post’’ as the only mail in 

the category that the SAS programs and 

processing refer to as ‘‘d23’’ volume.5 In 

the 2008 USO Report methodology, 

contestable mail included ‘‘Parcel Post’’ 

dropshipped at the destination delivery 

unit (DDU).6 Because ‘‘Parcel Post’’ 

evolved 7 since then, in the FY 2018 and 

FY 2019 methodology, the ‘‘d23’’ 

volume includes Parcel Select/Parcel 

Select Lightweight, Retail Ground/ 

Standard Post and First-Class Packages 

in the input workbooks and volume 

groupings of the overarching structure 

of the SAS processing programs code.8

The FY 2018 and FY 2019 data source 

mail volume inputs to the models also 

differ from previous years. The volume 

inputs are adjusted (weighted) to the 

national fiscal year annual estimates of 

mail volume delivered by city carriers 

(on letter routes) and rural carriers. The 

Commission’s Sensitivity Analysis 

section that follows includes the results 

of those changes for FY 2019. 

Commission’s Sensitivity Analysis 

The Commission’s models allow for 

the selection of different values for 

certain key parameters that affect the 

estimated value of the monopolies. In 

addition to the base case values that 

reflect the assumptions that the 

Commission selected as the most likely, 

‘‘low’’ and ‘‘high’’ values are evaluated 

to demonstrate the sensitivity of the 

results to each parameter and to help 

conceptualize the lower and upper 

bounds of reasonable estimates. Figure 1 

shows that the combined monopoly 

value estimate is most sensitive to the 

contestable volume with a range from 

low to high of about $7.2 billion. The 

results are less sensitive to the discount 

or to the cost advantage variables. 

BILLING CODE 7710–FW–P 


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9The base case combined monopoly model 

parameters (discount, delivery days/week, cost 

advantage and percentage of contestable mail 

potentially skimmed on profitable routes) are 

shaded in Table 1. The base case parameters for the 

combined (letter and mailbox)/postal monopoly 

estimate are the entrant offers a 10 percent 

discount, has a 10 percent cost advantage, delivers 

3 days a week and potentially skims 100 percent of 

the eligible contestable mail on profitable routes. 

To test the sensitivity of the FY 2019 

base case combined monopoly estimate, 

the value of the combined monopoly 

estimate is shown below in Table 1 for 

the full range of each parameter while 

holding the other variables to their base 

case values. 

Figure 2 shows that the mailbox 

monopoly value estimate is most 

sensitive to the contestable volume with 

a range from low to high of about $1.6 

billion. The mailbox monopoly value 

estimate is also sensitive to the number 

of delivery days. The results are less 

sensitive to the discount or to the cost 

advantage variables. 


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Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 9963 

10The parameters for the base case of the mailbox 

monopoly model are that the entrant offers a 10 

percent discount, has a 10 percent cost advantage, 

delivers 1 day a week, and potentially skims 100 

percent of the eligible contestable mail on profitable 

routes. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

BILLING CODE 7710–FW–C 

To test the sensitivity of the FY 2019 

base case combined monopoly estimate, 

the value of the combined monopoly 

estimate is shown below in Table 2 for 

the full range of each parameter while 

holding the other variables to their base 

case values. 

To the extent that the Commission’s 

additional analysis and this information 

may affect comments already filed in 

this docket or create new areas of 

interest for parties, the Commission is 

opening up a second comment period. 

Interested persons are invited to 

comment on any or all aspects of 

existing and potential methodology 

changes. Comments are due March 26, 

2021. 

It is ordered: 

1. The Commission provides notice of 

filing its Analysis of the Value of the 

Postal and Mailbox Monopolies in 

Library Reference PRC–LR–PI2020–1– 

NP1. 

2. Interested persons may submit 

written comments on any or all aspects 

of the Commission’s estimation 

methodology no later than March 26, 

2021. 

3. The Secretary shall arrange for 

publication of this Order in the Federal 

Register. 

By the Commission. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2021–03103 Filed 2–16–21; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91094; File No. SR–MEMX– 

2021–02] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Exchange’s Fee 

Schedule 

February 10, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

29, 2021, MEMX LLC (‘‘MEMX’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 


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