Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Rules and Regulations 1541 

Postal Service, Domestic Mail Manual, 

for the disposal or treatment of books 

and sound recordings that are 

undeliverable-as-addressed (UAA) in 

their original packaging. The disposal of 

these items as waste will simplify 

handling procedures and reduce costs. 

DATES: Effective Date: February 1, 2010. 

FOR FURTHER INFORMATION CONTACT: Bert 

Olsen, 202–268–7276, Mary Collins, 

202–268–5440. 

SUPPLEMENTARY INFORMATION: The Postal 

Service published a Federal Register 

proposed rule (73 FR 39272–39273) on 

July 9, 2008 to remove DMM section 

507.1.9.2. The intent of this section was 

to facilitate a process for identifying and 

returning books and recordings that had 

become undeliverable as a result of 

being ‘‘loose in the mail’’ (contents 

separated from packaging and other 

address information), to the original 

publisher or distributor. This standard 

was misinterpreted to allow some 

publishers and distributors to reclaim 

ownership of all UAA mail and not just 

mail that was truly identified as ‘‘loose’’ 

in the mail. 

Comments 

We received comments from three 

respondents on the proposed rule. One 

respondent represented several trade 

associations and two other respondents 

were from separate publishing 

companies. All comments received were 

in opposition to the proposal and are 

summarized and presented below 

followed by our responses: 

1. Comment: The Postal Service did 

not work closely and discuss the 

proposal with affected mailers. 

The Postal Service previously offered 

an opportunity for mailers to provide 

input well before the proposal was 

published. Additionally, publication of 

the proposed rule and requests for 

comments (July 9, 2008) afforded 

mailers an additional opportunity to 

contribute to the rule-making process 

prior to issuing a final rule. 

2. Comment: Due to copyright 

concerns and privacy issues, mailers are 

opposed to the Postal Service selling at 

auction undeliverable-as-addressed 

books and sound recordings. 

Obligations concerning privacy issues 

and copyright concerns are the 

publisher’s obligations. USPS® ancillary 

services allow mailers to fulfill their 

obligations by having undeliverable 

books returned to them, but only in 

accordance with postal services and 

endorsements currently available to 

mailers. One option when using 

Standard Mail® is that UAA mail can be 

forwarded or returned at the appropriate 

Media Mail or Library Mail price if the 

content of the mail qualifies as Media 

Mail under DMM 507.1.5.3, 173, 373, or 

473 or Library Mail under DMM 183, 

383, or 483 and the mail is marked 

‘‘Media Mail’’ or ‘‘Library Mail’’ directly 

below the ancillary service 

endorsement. 

3. Comment: The Postal Service 

should recycle undeliverable-asaddressed items. 

We are currently exploring a recycling 

offering by adding a new ancillary 

endorsement that mailers could use to 

assure undeliverable-as-addressed mail 

would be destroyed so it could not be 

used as originally intended. This 

potential offering is in its formative 

stage but if adopted may provide an 

attractive endorsement alternative for 

manufacturers and distributors of books 

and sound recordings who desire 

destruction of their undeliverable 

products for a fee. 

4. Comment: Provide electronic 

notification for the reason a mailpiece 

was undeliverable as addressed when 

using the ‘‘Return Service Requested’’ 

endorsement. 

The Return Service Requested 

endorsement provides the reason of 

nondelivery by hardcopy at the time of 

return of the product. However, we 

understand that mailers would prefer to 

know as quickly as possible why a piece 

was undeliverable via electronic data. 

We intend to evaluate the development 

of an electronic notification option with 

the Return Service Requested 

endorsement for a fee as a future service 

offering. 

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); 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: 

* * * * * 

500 Additional Services 

* * * * * 

507 Mailer Services 

1.0 Treatment of Mail 

* * * * * 

1.9 Dead Mail 

* * * * * 

[Delete 1.9.2 in its entirety and 

renumber current 1.9.3 as new 1.9.2] 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR Part 111 to reflect 

these changes. 

Neva R. Watson, 

Attorney, Legislative. 

[FR Doc. 2010–387 Filed 1–11–10; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

39 CFR Part 601 

Purchasing of Property and Services 

AGENCY: Postal ServiceTM. 

ACTION: Final rule. 

SUMMARY: The Postal Service is revising 

its regulations governing the supplier 

disagreement resolution (SDR) process 

to clarify and explain the purposes of 

that process, and to remove extraneous 

and duplicative language. 

DATES: Effective Date: January 12, 2010. 

FOR FURTHER INFORMATION CONTACT: Paul 

D. McGinn, 202–268–4368, or Edward 

B. Halstead, 202 268–6221. 

SUPPLEMENTARY INFORMATION: The Postal 

Service is revising the regulations in 39 

CFR 601.107 and 601.108 that govern 

the supplier disagreement resolution 

(SDR) process in order to clarify certain 

SDR procedures. These changes are 

explained in more detail below. 

Explanation of Changes 

Section 601.107: Initial Disagreement 

Resolution 

Paragraph (a) has been revised to state 

that the Supplier Disagreement 

Resolution Official (SDR Official) is a 

contracting officer designated by the 

Postal Service to perform the functions 

established under § 601.108. 

Paragraph (b) has been revised to 

clarify the timelines for filing initial 

disagreements concerning solicitations. 

Paragraph (c) is revised to inform 

parties that the alternative dispute 

resolution (ADR) process may be used to 

resolve disagreements and that if an 

agreement cannot be reached under 

ADR, the supplier has 10 days to lodge 

its disagreement with the SDR Official. 

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1542 Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Rules and Regulations 

Section 601.108: SDR Official 

Disagreement Resolution 

Paragraph (a) has been revised to 

remove language that was extraneous or 

duplicative of statements made in other 

paragraphs. 

Paragraph (b) contains editorial 

changes and further explains the 

purposes of the disagreement resolution 

process. 

Paragraph (c) clarifies the acceptable 

modes for submitting a disagreement 

under § 601.107 or contest of decision 

under § 601.105 and updates the 

dedicated fax number. 

Paragraph (d) clarifies that this 

paragraph covers both disagreements 

under § 601.107 and contests of 

decisions under § 601.105. Paragraph 

(d)(3) has been revised for clarity. 

Paragraph (e) is supplemented to 

provide examples of remedies that the 

SDR Official is authorized to grant. 

Paragraph (g) explains when a 

challenged award becomes final, a 

status that varies depending on how the 

SDR Official resolves the disagreement. 

The grounds upon which appeals may 

be taken to Federal court, previously 

addressed in paragraph (g), are now 

addressed in a new paragraph (h). 

Paragraph (h) clarifies the grounds 

upon which the Postal Service’s final 

contract award, as described in 

paragraph (g), may be appealed. 

Paragraph (h) further clarifies that the 

party lodging the disagreement may 

seek review of the Postal Service’s final 

contract award only after the mandatory 

administrative remedies provided under 

§ 601.107 and § 601.108 have been 

exhausted. 

Paragraph (i) is identical to the old 

paragraph (h), except that it now 

clarifies that the resolution timeframe 

applies not only to disagreements under 

§ 601.107, but also to contests of 

decisions under § 601.105. 

List of Subjects in 39 CFR Part 601 

Government procurement, Postal 

Service. 

■ Accordingly, 39 CFR Part 601 is 

amended as follows: 

PART 601—[AMENDED] 

■ 1. The authority citation for 39 CFR 

Part 601 continues to read as follows: 

Authority: 39 U.S.C. 401, 404, 410, 411, 

2008, 5001–5605. 

■ 2. Revise §§ 601.107 and 601.108 to 

read as follows: 

§ 601.107 Initial disagreement resolution. 

(a) Definitions. 

(1) Days. Calendar days; however, any 

time period will run until a day that is 

not a Saturday, Sunday, or legal 

holiday. 

(2) Disagreements. All disputes, 

protests, claims, disagreements, or 

demands of whatsoever nature arising in 

connection with the acquisition of 

property and services within the scope 

of § 601.103 of this chapter, except 

those: 

(i) That arise pursuant to a contract 

under the Contract Disputes Act under 

§ 601.109; 

(ii) That concern debarment, 

suspension, or ineligibility under 

§ 601.113; or 

(iii) That arise out of the nonrenewal 

of transportation contracts containing 

other provisions for the review of such 

decisions. 

(3) Interested parties. Actual or 

prospective offerors whose direct 

economic interests would be affected by 

the award of, or failure to award, the 

contract. 

(4) Lodge. A disagreement is lodged 

on the date it is received by the 

contracting officer or the Supplier 

Disagreement Resolution Official, as 

appropriate. 

(5) SDR Official. The Supplier 

Disagreement Resolution Official, a 

contracting officer designated by the 

Postal Service to perform the functions 

established under § 601.108. 

(b) Policy. It is the policy of the Postal 

Service and in the interest of its 

suppliers to resolve disagreements by 

mutual agreement between the supplier 

and the responsible contracting officer. 

All disagreements must be lodged with 

the responsible contracting office in 

writing via facsimile, e-mail, hand 

delivery, or U.S. Mail. For 

disagreements that concern the award of 

a contract, the disagreement shall be 

lodged within 10 days of the date the 

supplier received notification of award 

or 10 days from the date the supplier 

received a debriefing, whichever is later. 

For disagreements that concern alleged 

improprieties in a solicitation, the 

contracting officer must receive the 

disagreement before the time set for the 

receipt of proposals, unless the 

disagreement concerns an alleged 

impropriety that does not exist in the 

initial solicitation but which is 

subsequently incorporated into the 

solicitation, in which event the 

contracting officer must receive the 

disagreement no later than the next 

closing time for the receipt of proposals 

following the incorporation. The 

resolution period shall last 10 days from 

the date when the disagreement is 

lodged with the contracting officer. 

During the supplier-contracting officer 

10-day resolution period, the 

responsible contracting officer’s 

management may help to resolve the 

disagreement. At the conclusion of the 

10-day resolution period, the 

contracting officer must communicate, 

in writing, to the supplier his or her 

resolution of the disagreement. 

(c) Alternative dispute resolution. 

Alternative dispute resolution (ADR) 

procedures may be used to resolve a 

disagreement. If the use of ADR is 

agreed upon, the 10-day limitation is 

suspended. If agreement cannot be 

reached, the supplier has 10 days to 

lodge its disagreement with the SDR 

Official. 

§ 601.108 SDR Official disagreement 

resolution. 

(a) General. If a disagreement under 

§ 601.107 is not resolved within 10 days 

after it was lodged with the contracting 

officer, if the use of ADR fails to resolve 

it at any time, if the supplier is not 

satisfied with the contracting officer’s 

resolution of the disagreement, or if the 

decision not to accept or consider 

proposals under § 601.105 is contested, 

the SDR Official is available to provide 

final resolution of the matter. The Postal 

Service desires to resolve all such 

matters quickly and inexpensively in 

keeping with the regulations in this 

part. 

(b) Scope and applicability. This 

procedure is established as the sole and 

exclusive means to resolve 

disagreements under § 601.107 and 

contests of decisions under § 601.105. 

This procedure is intended to 

expeditiously resolve disagreements 

that are not resolved at the responsible 

contracting officer level; to reduce 

litigation expenses, inconvenience, and 

other costs for all parties; to facilitate 

successful business relationships with 

Postal Service suppliers, the supplier 

community, and other persons; and to 

develop further the basis for the Postal 

Service’s purchasing decisions and the 

administrative records concerning those 

decisions. All disagreements under 

§ 601.107 and contests of decisions 

under § 601.105 will be lodged with and 

resolved, with finality, by the SDR 

Official under and in accordance with 

the sole and exclusive procedure 

established in this section. 

(c) Lodging. The disagreement under 

§ 601.107 or contest of decision under 

§ 601.105 must be lodged with the SDR 

Official in writing via facsimile, e-mail, 

hand delivery, or U.S. Mail. The 

disagreement under § 601.107 or contest 

of decision under § 601.105 must state 

the factual circumstances relating to it 

and the remedy sought. A disagreement 

under § 601.107 must also state the 

scope and outcome of the initial 

disagreement resolution attempt with 

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Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Rules and Regulations 1543 

the contracting officer. The address of 

the SDR Official is: Room 4130 (Attn: 

SDR Official), United States Postal 

Service Headquarters, 475 L’Enfant 

Plaza, SW., Washington, DC 20260– 

4130. e-mail Address: 

SDROfficial@usps.gov. Fax Number: 

(202) 268–0075. 

(d) Lodging timeframes. 

Disagreements under § 601.107 or 

contests of decisions under § 601.105 

must be lodged with the SDR Official 

within the following timeframes: 

(1) Disagreements under § 601.107 not 

resolved with the contracting officer 

must be lodged with the SDR Official 

within 20 days after they were lodged 

with the contracting officer (unless ADR 

had been used to attempt to resolve 

them); 

(2) Disagreements under § 601.107 for 

which ADR had been agreed to be used 

must be lodged with the SDR Official 

within 10 days after the supplier knew 

or was informed by the contracting 

officer or otherwise that the matter was 

not resolved; 

(3) Where a supplier is dissatisfied 

with the contracting officer’s resolution 

of a disagreement under § 601.107, the 

supplier must lodge the disagreement 

with the SDR Official within 10 days 

after the supplier first receives 

notification of the contracting officer’s 

resolution; and 

(4) Contests of decisions under 

§ 601.105 to decline to accept or 

consider proposals must be lodged with 

the SDR Official within 10 days of the 

supplier’s receipt of the written notice 

explaining the decision. 

(5) The SDR Official may grant an 

extension of time to lodge a 

disagreement under § 601.107 or contest 

of decision under § 601.105 or to 

provide supporting information when 

warranted. Any request for an extension 

must set forth the reasons for the 

request, be made in writing, and be 

delivered to the SDR Official on or 

before the time to lodge a disagreement 

lapses. 

(e) Disagreement decision process. 

The SDR Official will promptly provide 

a copy of a disagreement to the 

contracting officer, who will promptly 

notify other interested parties. The SDR 

Official will consider a disagreement 

and any response by other interested 

parties and appropriate Postal Service 

officials within a time frame established 

by the SDR Official. The SDR Official 

may also meet individually or jointly 

with the person or organization lodging 

the disagreement, other interested 

parties, and/or Postal Service officials, 

and may undertake other activities in 

order to obtain materials, information, 

or advice that may help to resolve the 

disagreement. The person or 

organization lodging the disagreement, 

other interested parties, or Postal 

Service officials must promptly provide 

all relevant, nonprivileged materials and 

other information requested by the SDR 

Official. If a submission contains trade 

secrets or other confidential 

information, it should be accompanied 

by a copy of the submission from which 

the confidential matter has been 

redacted. The SDR Official will 

determine whether any redactions are 

appropriate and will be solely 

responsible for determining the 

treatment of any redacted materials. 

After obtaining such information, 

materials, and advice as may be needed, 

the SDR Official will promptly issue a 

written decision resolving the 

disagreement and will deliver the 

decision to the person or organization 

lodging the disagreement, other 

interested parties, and appropriate 

Postal Service officials. When resolving 

a disagreement raised under § 601.107, 

the SDR Official may grant remedies 

including, but not limited to, the 

following: 

(1) Directing the contracting officer to 

revise the solicitation or to issue a new 

solicitation; 

(2) Directing the contracting officer to 

recompete the requirement; 

(3) Directing the contracting officer to 

reevaluate the award on the basis of 

current proposals and the evaluation 

factors contained in the solicitation; and 

(4) Directing the contracting officer to 

terminate the contract or to refrain from 

exercising options under the contract. 

(f) Guidance. The SDR Official will be 

guided by the regulations contained in 

this part and all applicable public laws 

enacted by Congress. Non-Postal Service 

procurement rules or regulations and 

revoked Postal Service regulations will 

not apply or be taken into account. 

Failure of any party to provide 

requested information may be taken into 

account by the SDR Official in the 

decision. 

(g) Final resolution by the SDR 

Official and final contract award of the 

Postal Service. A resolution by the SDR 

Official will be final and binding. If the 

SDR Official’s final resolution affirms 

the original contract award of the 

contracting officer, the contracting 

officer’s original contract award 

becomes the Postal Service’s final 

contract award, and may be subject to 

judicial review as described in 

paragraph (h) of this section. If the SDR 

Official’s final resolution directs that the 

Postal Service terminate the contract 

award and issue a new solicitation, 

recompete the requirement, or 

reevaluate the current award, the 

contracting officer shall implement 

promptly the SDR Official’s final 

resolution. However, any contract award 

made by the contracting officer after a 

resolicitation, recompetition, or 

reevaluation directed by the SDR 

Official is not a final contract award of 

the Postal Service that may be subject to 

judicial review unless and until 

disagreements concerning that contract 

award have been lodged and resolved 

with finality by the SDR Official. 

(h) Judicial review. The Postal 

Service’s final contract award, as 

described in paragraph § 601.108(g), 

may be appealed to a Federal court with 

jurisdiction based only upon an alleged 

violation of the regulations contained in 

this part or an applicable public law 

enacted by Congress. The party lodging 

the disagreement may seek review of the 

Postal Service’s final contract award 

only after the mandatory administrative 

remedies provided under § 601.107 and 

§ 601.108 have been exhausted. 

(i) Resolution timeframe. It is 

intended that this procedure generally 

will resolve disagreements under 

§ 601.107 or contests of decisions under 

§ 601.105 within approximately 30 days 

after receipt by the SDR Official. The 

time may be shortened or lengthened 

depending on the complexity of the 

issues and other relevant 

considerations. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. 2010–385 Filed 1–11–10; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 and 81 

[Docket: EPA–R02–OAR–2009–0508; FRL– 

9091–4] 

Approval and Promulgation of 

Implementation Plans; Puerto Rico; 

Guaynabo PM10 Limited Maintenance 

Plan and Redesignation Request 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is approving the Limited 

Maintenance Plan for the Municipality 

of Guaynabo nonattainment area in 

Puerto Rico and the request by the 

Commonwealth of Puerto Rico to 

redesignate the area from nonattainment 

to attainment for the National Ambient 

Air Quality Standards for particulate 

matter with an aerodynamic diameter 

less than or equal to a nominal 10 

micrometers (PM10). On March 31, 2009, 

WReier-Aviles on DSKGBLS3C1PROD with RULES