[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Notices]
[Pages 593-594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33317]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2011-54; Order No. 631]


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 Expedited Package Services 3 contract to the 
competitive product list. This notice addresses procedural steps 
associated with the filing.

DATES: Comments are Due: January 10, 2011.

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

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at <a href="/cdn-cgi/l/email-protection#65161100150d000b4b160d04170308040b251517064b020a13"><span class="__cf_email__" data-cfemail="d2a1a6b7a2bab7bcfca1bab3a0b4bfb3bc92a2a0b1fcb5bda4">[email protected]</span></a> or 202-789-6824.

SUPPLEMENTARY INFORMATION: 

Table of Contents

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

I. Background

    On December 28, 2010, the Postal Service filed a notice announcing 
that it intends to enter into an additional Global Expedited Package 
Services 3 (GEPS 3) contract.\1\ In its initial filing, the Postal 
Service included a draft of the contract, noting that a final agreement 
would be executed soon. Id. at 1 n.2. On December 29, 2010, the Postal 
Service submitted a redacted signed copy of the contract, replacing the 
draft version originally filed in the Notice.\2\ The Postal Service 
also submitted a nonpublic version of the signed agreement separately 
under seal, also substituting the version originally filed. Revised 
Notice at 1-2.
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    \1\ Notice of United States Postal Service of Filing a 
Functionally Equivalent Global Expedited Package Services 3 
Negotiated Service Agreement and Application for Non-Public 
Treatment of Materials Filed under Seal, December 28, 2010; Notice 
of the United States Postal Service of Errata to Notice of Filing a 
Functionally Equivalent Global Expedited Package Services 3 
Negotiated Service Agreement and Application for Non-Public 
Treatment of Materials Filed Under Seal (together, Notice).
    \2\ Notice of the United States Postal Service of Filing a 
Signed Global Expedited Package Services 3 Negotiated Service 
Agreement, December 29, 2010, at 1 (Revised Notice).
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    GEPS contracts provide incentives for businesses that mail products 
directly to foreign destinations using Express Mail International, 
Priority Mail International, or both. Notice at 4. The Postal Service 
asserts that the instant contract is supported by Governors' Decision 
No. 08-7, which is attached to the Notice and was originally filed in 
Docket No. CP2008-4.\3\
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    \3\ Notice at 1, Attachment 3; see Decision of the Governors of 
the United States Postal Service on the Establishment of Prices and 
Classifications for Global Expedited Package Services Contracts, 
Docket No. CP2008-4, issued May 6, 2008 (Governors' Decision No. 08-
7).

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[[Page 594]]

    The Postal Service believes that the instant agreement should be 
included within the GEPS 3 product because it is functionally 
equivalent to the contract filed in Docket No. CP2010-71.\4\ The Postal 
Service explains that, in Docket No. CP2010-71, the Commission added 
GEPS 3 to the competitive product list and established the contract 
filed as the GEPS 3 baseline agreement for comparing other functionally 
equivalent contracts. Notice at 1-2 (citing Order No. 503 at 7). It 
states that other GEPS contracts may be included within the GEPS 3 
product if they are functionally equivalent to the GEPS 3 baseline 
agreement and meet the requirements of 39 U.S.C. 3633. Id. at 2.
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    \4\ Docket Nos. MC2010-28 and CP2010-71, Order Approving Global 
Expedited Package Services 3 Negotiated Service Agreement, July 29, 
2010 (Order No. 503).
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    The instant contract. The Postal Service filed the instant contract 
in accordance with 39 CFR 3015.5. The term of the instant agreement is 
5 years from the effective date unless either party terminates the 
agreement sooner. Id. at 3; Revised Notice, Attachment 1 at 7. The 
Postal Service will notify the other party of the effective date within 
30 days after receiving all necessary regulatory approvals. Revised 
Notice, Attachment 1 at 7. The effective date will be no earlier than 
February 17, 2011. Id.
    To support the Notice, the Postal Service filed four attachments as 
follows:
    <bullet> Attachment 1--a redacted copy of the contract and an 
applicable annex; \5\
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    \5\ The Postal Service filed a redacted copy of the signed 
agreement as Attachment 1 to the Revised Notice.
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    <bullet> Attachment 2--a certified statement required by 39 CFR 
3015.5(c)(2);
    <bullet> Attachment 3--a redacted copy of Governors' Decision No. 
08-7 (with attachments) establishing prices and classifications for 
GEPS contracts and a certification of the Governors' vote; and
    <bullet> Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the contract, related 
financial information, and customer-identifying information under seal.
    The Postal Service contends that the instant agreement fits within 
the Mail Classification Schedule (MCS) language for GEPS contracts 
included in Governors' Decision No. 08-7, but understands that the 
Commission considers the language illustrative until the MCS is 
completed. Notice at 3 (citing Order No. 86 at 6).
    The Notice advances reasons why the instant GEPS 3 contract is 
functionally equivalent to the GEPS 3 baseline agreement in Docket No. 
CP2010-71. Id. at 3. The Postal Service believes that the instant 
contract shares similar cost and market characteristics with both the 
baseline agreement and previous GEPS contracts. Id. at 3-4. It also 
asserts that the instant contract fits within the parameters outlined 
by Governors' Decision No. 08-7 establishing the rates for GEPS 
agreements. Id. at 4.
    The Postal Service identifies several differences between the 
instant contract and the GEPS 3 baseline agreement, including customer-
specific information, payment method, minimum revenue commitment, and 
term. Id. at 4-6. Despite these differences, the Postal Service asserts 
that the instant contract is ``functionally equivalent in all pertinent 
respects'' to the GEPS 3 baseline agreement.\6\
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    \6\ Revised Notice at 6 (citing Docket Nos. CP2008-8, CP2008-9, 
and CP2008-10, Order No. 85, Order Concerning Global Plus Negotiated 
Service Agreements, June 27, 2008, at 8).
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    The Postal Service concludes that its filing demonstrates that the 
instant GEPS 3 contract complies with the requirements of 39 U.S.C. 
3633 and is functionally equivalent to the GEPS 3 baseline agreement. 
Notice at 6. Therefore, it requests that the Commission add the instant 
contract to the GEPS 3 product grouping. Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2011-54 to consider matters 
related to the contract identified in the Postal Service's Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632, 
3633, or 39 CFR part 3015. Comments are due no later than January 10, 
2011. The public portions of this filing 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 the captioned proceeding.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2011-54 to consider 
matters raised by the Postal Service's Notice.
    2. Comments by interested persons in this proceeding are due no 
later than January 10, 2011.
    3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as the officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-33317 Filed 1-4-11; 8:45 am]
BILLING CODE 7710-FW-P


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