[Federal Register Volume 76, Number 2 (Tuesday, January 4, 2011)]
[Notices]
[Pages 395-396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33164]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2011-16 and CP2011-53; Order No. 627]


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 Parcel Select Contract 1 to the competitive product 
list. This notice addresses procedural steps associated with this 
filing.

DATES: Comments are due: January 4, 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#98ebecfde8f0fdf6b6ebf0f9eafef5f9f6d8e8eafbb6fff7ee"><span class="__cf_email__" data-cfemail="2a595e4f5a424f440459424b584c474b446a5a5849044d455c">[email protected]</span></a> or 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Introduction

    Pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the Postal 
Service filed a formal request and associated supporting information to 
add Parcel Select Contract 1 to the competitive product list.\1\ The 
Postal Service states that ``[t]he product is for the licensing and 
distribution of the `Sample Showcase' co-op box,'' which is similar to 
the Samples Co-op Box being tested by the Postal Service as an 
experimental product in Docket No. MT2010-1.\2\
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    \1\ Request of the United States Postal Service to Add Parcel 
Select Contract 1 to Competitive Product List and Notice of Filing 
(Under Seal) of Contract and Supporting Data, December 23, 2010 
(Request).
    \2\ Request at 1; see Docket No. MT2010-1, Order No. 452, Order 
Approving Samples Co-op Box Market Test, May 5, 2010.
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    The Postal Service will license the use of the Sample Showcase box 
and associated trademarks to StartSampling, Inc., a provider of sample-
related services. Request, Attachment B at 1. StartSampling, Inc. will 
fund and manage all aspects of distributing the Sample Showcase box, 
including marketing, assembling, and tendering the box for delivery by 
the Postal Service. Id. at 1, 3. StartSampling, Inc. will pay the 
Postal Service a portion of all revenue exceeding a certain amount that 
is derived from the boxes. Id. at 8.
    The Postal Service asserts that Parcel Select Contract 1 is a 
competitive product ``not of general applicability'' within the meaning 
of 39 U.S.C. 3632(b)(3). Request at 1. The Postal Service states that 
the prices and classification underlying this contract are supported by 
Governors' Decision No. 10-8, included as Attachment A to the 
Request.\3\ The Request has been assigned Docket No. MC2011-16.
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    \3\ See Request at 1; Decision of the Governors of the United 
States Postal Service on Establishment of Rate and Class Not of 
General Applicability for Parcel Select Service, Docket Nos. MC2011-
16 and CP2011-53, issued December 16, 2010 (Governors' Decision No. 
10-8).
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    The Postal Service contemporaneously filed a contract related to 
the proposed new product. Request, Attachment B. The contract has been 
assigned Docket No. CP2011-53.
    Request. In support of its Request, the Postal Service filed six 
attachments as follows:
    <bullet> Attachment A--a redacted copy of Governors' Decision No. 
10-8 establishing prices and classification for Parcel Select Service 
and a certification of the Governors' vote;
    <bullet> Attachment B--a redacted copy of the contract;
    <bullet> Attachment C--a proposed change in the Mail Classification 
Schedule competitive product list;
    <bullet> Attachment D--a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
    <bullet> Attachment E--a certification of compliance with 39 U.S.C. 
3633(a); and
    <bullet> Attachment F--an application for non-public treatment of 
materials to maintain redacted portions of the contract and supporting 
documents under seal.
    As submitted, Attachment E is incomplete as it does not include the 
certification of compliance with 39 U.S.C. 3633(a)(1) and (3).\4\ To 
complete its Request, the Postal Service shall file the appropriate 
certification of compliance no later than January 4, 2011.
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    \4\ It includes the certification of the Governors' vote that 
should have been included with Governors' Decision No. 10-8 in 
Attachment A.
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    In the Statement of Supporting Justification, Marc D. McCrery, 
Manager, Specialty Shipping, asserts that the service to be provided 
under the contract will cover its attributable costs, make a positive 
contribution to institutional costs, and increase contribution toward 
the requisite 5.5 percent of the Postal Service's total institutional 
costs. Request, Attachment D. Thus, Mr. McCrery contends there will be 
no issue of market dominant products subsidizing competitive products 
as a result of this contract. Id.
    Related contract. A redacted version of the specific Parcel Select 
Contract 1 is included with the Request. Id., Attachment B. The 
contract will become effective on the date of any final regulatory 
approvals. Id. at 1. The public version of the contract redacts the 
terms of the agreement, but lists provisions enabling either party to 
terminate with or without cause. See id. at 11-13. The Postal Service 
represents that the contract is consistent with 39 U.S.C. 3633(a). Id., 
Attachment D.
    The Postal Service filed much of the supporting materials, 
including the specific Parcel Select Contract 1, under seal. Id., 
Attachment F. It maintains that redacted portions of the contract, 
Governors' Decision No. 10-8, and related financial information, should

[[Page 396]]

remain confidential. Id. at 2. This information includes the price 
structure and terms, expected profit, underlying costs and assumptions, 
cost coverage projections, and customer-related information. Id. at 2-
3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2011-16 and CP2011-53 to 
consider the Request pertaining to the proposed Parcel Select Contract 
1 product and the related contract, respectively.
    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, 39 CFR part 3015, and 39 CFR 
part 3020, subpart B. Comments are due no later than January 14, 2011. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2011-16 and CP2011-53 
to consider the matters raised in each docket.
    2, The Postal Service shall file the appropriate certification of 
compliance with 39 U.S.C. 3633(a)(1) and (3) no later than January 4, 
2011.
    3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    4. Comments by interested persons in these proceedings are due no 
later than January 14, 2011.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-33164 Filed 1-3-11; 8:45 am]
BILLING CODE 7710-FW-P


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