[Federal Register Volume 76, Number 2 (Tuesday, January 4, 2011)]
[Notices]
[Pages 394-395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33161]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2011-52; Order No. 624]


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 a Global Direct Contracts 1 contract to the competitive 
product list. This notice addresses procedural steps associated with 
this filing.

DATES: Comments are due: January 5, 2011.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in FOR 
FURTHER INFORMATION CONTACT by telephone for advice on alternatives to 
electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
<a href="/cdn-cgi/l/email-protection#0e7d7a6b7e666b60207d666f7c68636f604e7e7c6d20696178"><span class="__cf_email__" data-cfemail="b2c1c6d7c2dad7dc9cc1dad3c0d4dfd3dcf2c2c0d19cd5ddc4">[email protected]</span></a> or 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Background

    On December 23, 2010, the Postal Service filed a notice announcing 
its intent to enter into an additional Global Direct Contracts 1 
agreement.\1\ Global Direct Contracts provide a rate for mail 
acceptance within the United States, transportation to a receiving 
country of mail that bears the destination country's indicia, and 
payment by the Postal Service of the appropriate settlement charges to 
the receiving country.\2\ The Postal Service believes that the instant 
agreement should be included within the Global Direct Contracts 1 
product because it is functionally equivalent to the Global Direct 
Contracts 1 agreement in Docket Nos. MC2010-17 and CP2010-18. Notice at 
2.
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    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Direct Contracts 1 Negotiated Service 
Agreement, December 23, 2010 (Notice). Although the agreement has 
not yet been signed, the Postal Service expects the agreement to be 
executed soon and will advise the Commission of any substantive 
changes to the text. Notice at 1 n.2.
    \2\ Decision of the Governors of the United States Postal 
Service on the Establishment of Prices and Classifications for 
Global Direct, Global Bulk Economy, and Global Plus Contracts, 
Docket Nos. MC2008-7, CP2008-16 and CP2008-17, issued July 16, 2008 
(Governors' Decision No. 08-10). The Commission revised the Mail 
Classification Schedule language proposed in Governors' Decision No. 
08-10 to reflect the actual payment practice under typical Global 
Direct Contracts. See Docket Nos. MC2009-9, CP2009-10 and CP2009-11, 
Order Concerning Global Direct Contracts Negotiated Service 
Agreements, December 19, 2008, at 9 (Order No. 153).
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    The instant agreement. The Postal Service filed the instant 
agreement under 39 CFR 3015.5. Id. at 1. In addition, the Postal 
Service contends that the agreement is consistent with Order No. 
386.\3\ The Postal Service states that the instant agreement succeeds 
the Global Direct Contract in Docket No. CP2010-19, which is scheduled 
to expire January 10, 2011. Id. at 2-3. The term of the instant 
agreement begins on January 11, 2011 and ends in January 2012 on the 
day before Canada Post Corporation implements price changes for its 
domestic Admail. Id. at 3, Attachment 1 at 7. If prices for Admail do 
not change during January 2012, then the instant agreement is scheduled 
to expire January 31, 2012. Id.
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    \3\ See Docket Nos. MC2010-17 and CP2010-18, Order Concerning 
Filing of Functionally Equivalent Global Direct Contracts 1 
Negotiated Service Agreement, January 11, 2010 (Order No. 386).
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    To support its Notice, the Postal Service filed four attachments as 
follows:
    <bullet> Attachment 1--a redacted copy of the contract;
    <bullet> Attachment 2--a certified statement required by 39 CFR 
3015.5(c)(2);
    <bullet> Attachment 3--a redacted copy of Governors' Decision No. 
08-10, which establishes prices and classifications for Global Direct, 
Global Bulk Economy, and Global Plus Contracts; and
    <bullet> Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the contract and supporting 
documents under seal.
    The Postal Service states that the instant agreement fits within 
the Mail Classification Schedule language for Global Direct Contracts 
included in Governors' Decision No. 08-10, with the modification 
proposed by the Commission to reflect the actual payment practice under 
these types of agreements. Id. at 2 (citing Order No. 153 at 9).
    The Notice advances reasons why the instant agreement is 
functionally equivalent to the previous Global Direct Contracts 1 
agreement in Docket Nos. MC2010-17 and CP2010-18. Id. at 3. Aside from 
cosmetic or customer-specific updates, the Postal Service contends that 
the only differences are that the instant agreement (1) concerns Global 
Direct service used with Admail to Canada; (2) contains more detailed 
procedures relating to penalties for mail that does not comply with 
applicable regulations; (3) addresses actual and potential changes in 
pricing; and (4) revises minimum commitments and annexes. Id. at 3-4. 
Despite these differences, the Postal Service contends that the instant 
contract is functionally equivalent to the Global Direct Contracts 1 
agreement filed previously because the core terms and conditions remain 
the same. Id. at 4.
    The Postal Service asserts that ``the cost and market 
characteristics of this agreement are substantially similar to those of 
prior Global Direct contracts'' and that the agreement complies with 
the requirements of 39 U.S.C. 3633. Id. It requests that the Commission 
include

[[Page 395]]

this agreement within the Global Direct Contracts 1 product. Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2011-52 to consider matters 
related to the contract identified in the Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632 or 
3633 and 39 CFR part 3015. Comments are due no later than January 5, 
2011. The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints John P. Klingenberg to serve as Public 
Representative in the captioned filings.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2011-52 to consider 
matters raised by the Postal Service's Notice.
    2. Comments by interested persons in these proceedings are due no 
later than January 5, 2011.
    3. Pursuant to 39 U.S.C. 505, John P. Klingenberg is appointed to 
serve as the officer of the Commission (Public Representative) to 
represent the interests of the general public in these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
 Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-33161 Filed 1-3-11; 8:45 am]
BILLING CODE 7710-FW-P


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