1276 Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices 

1United States Postal Service FY 2012 Annual 

Compliance Report, December 28, 2012 (FY 2012 

ACR). Public portions of the Postal Service’s filing 

are available on the Commission’s Web site at 

http://www.prc.gov. 

directives and regulations include 

requirements for safeguarding Federal 

information systems and personally 

identifiable information used in Federal 

agency business processes, as well as 

related reporting requirements. OPM 

and SSA recognize that all laws, 

circulars, memoranda, directives and 

regulations relating to the subject of this 

agreement and published subsequent to 

the effective date of this agreement must 

also be implemented if mandated. 

FISMA requirements apply to all 

Federal contractors and organizations or 

sources that possess or use Federal 

information, or that operate, use, or 

have access to Federal information 

systems on behalf of an agency. OPM 

will be responsible for oversight and 

compliance of their contractors and 

agents. Both OPM and SSA reserve the 

right to conduct onsite inspection to 

monitor compliance with FISMA 

regulations. 

F. Inclusive Dates of the Match 

The matching program shall become 

effective upon the signing of the 

agreement by both parties to the 

agreement and approval of the 

agreement by the Data Integrity Boards 

of the respective agencies, but no sooner 

than 40 days after notice of this 

matching program is sent to Congress 

and the Office of Management and 

Budget or 30 days after publication of 

this notice in the Federal Register, 

whichever is later. The matching 

program will continue for 18 months 

from the effective date and may be 

extended for an additional 12 months 

thereafter, if certain conditions are met. 

U.S. Office of Personnel Management. 

John Berry, 

Director. 

[FR Doc. 2013–00151 Filed 1–7–13; 8:45 am] 

BILLING CODE 6325–38–P 

POSTAL REGULATORY COMMISSION 

[Docket No. ACR2012; Order No. 1609] 

FY 2012 Annual Compliance Report 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Postal Service has filed 

an Annual Compliance Report on the 

costs, revenues, rates, and quality of 

service associated with its products in 

fiscal year 2012. Within 90 days, the 

Commission must evaluate that 

information and issue its determination 

as to whether rates were in compliance 

with title 39, chapter 36 and whether 

service standards in effect were met. To 

assist in this, the Commission seeks 

public comments on the Postal Service’s 

Annual Compliance Report. 

DATES: Comments are due: February 1, 

2013. 

Reply Comments are due: February 

15, 2013. 

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: 

Stephen L. Sharfman, General Counsel, 

at 202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Overview of the Postal Service’s FY 

2012 ACR 

III. Procedural Steps 

IV. Ordering Paragraphs 

I. Introduction 

On December 28, 2012, the United 

States Postal Service (Postal Service) 

filed with the Commission, pursuant to 

39 U.S.C. 3652, its Annual Compliance 

Report (ACR) for fiscal year (FY) 2012.1

Section 3652 requires submission of 

data and information on the costs, 

revenues, rates, and quality of service 

associated with postal products within 

90 days of the closing of each fiscal 

year. In conformance with other 

statutory provisions and Commission 

rules, the ACR includes the Postal 

Service’s FY 2012 Comprehensive 

Statement, its FY 2012 annual report to 

the Secretary of the Treasury on the 

Competitive Products Fund, and certain 

related Competitive Products Fund 

material. See respectively, 39 U.S.C. 

3652(g), 39 U.S.C. 2011(i), and 39 CFR 

3060.20–23. In line with past practice, 

some of the material in the FY 2012 

ACR appears in non-public annexes. 

The filing begins a review process that 

results in an Annual Compliance 

Determination (ACD) issued by the 

Commission to determine whether 

Postal Service products offered during 

FY 2012 are in compliance with 

applicable title 39 requirements. 

II. Overview of the Postal Service’s FY 

2012 ACR 

Contents of the filing. The Postal 

Service’s FY 2012 ACR consists of a 48- 

page narrative; extensive additional 

material appended as separate folders 

and identified in Attachment One; and 

an application for non-public treatment 

of certain materials, along with a 

supporting rationale filed as Attachment 

Two. The filing also includes the 

Comprehensive Statement, Report to the 

Secretary of the Treasury, and 

information on the Competitive 

Products Fund filed in response to 

Commission rules. This material has 

been filed electronically with the 

Commission, and some also has been 

filed in hard-copy form. 

Scope of filing. The material 

appended to the narrative consists of: 

(1) Domestic product costing material 

filed on an annual basis summarized in 

the Cost and Revenue Analysis (CRA); 

(2) comparable international costing 

material summarized in the 

International Cost and Revenue 

Analysis (ICRA); (3) worksharing-related 

cost studies; and (4) billing determinant 

information for both domestic and 

international mail. FY 2012 ACR at 2– 

3. Inclusion of these four data sets is 

consistent with the Postal Service’s past 

ACR practices. As with past ACRs, the 

Postal Service has split certain materials 

into public and non-public versions. Id. 

at 3. 

‘‘Roadmap’’ document. A roadmap to 

the FY 2012 ACR appears as Library 

Reference USPS–FY12–9. This 

document provides brief descriptions of 

the materials submitted, as well as the 

flow of inputs and outputs among them; 

a discussion of differences in 

methodology relative to Commission 

methodologies in last year’s ACD; a list 

of special studies and a discussion of 

obsolescence, as required by 

Commission rule 3050.12. Id. at 3–4. 

Methodology. The Postal Service 

states that it has adhered to the 

methodologies applied by the 

Commission in the FY 2011 ACD, 

except in instances where the 

Commission approved methodology 

changes subsequent to the FY 2011 

ACD. Those changes are identified in 

the prefaces accompanying the 

appended folders. Id. at 4. 

Proposals for which the Postal Service 

has filed to change analytical principles 

since the filing of the FY 2011 ACR are 

identified and summarized in a table. 

Id. at 4–5. Generally, with respect to 

proposed changes that were pending 

resolution as of the date of the filing, the 

Postal Service prepared two versions of 

the materials for its ACR. Id. at 5. The 

Postal Service states that it intends to 

file a petition to amend the rule 

governing proposals to change 

methodologies, and requests that the 

Commission file all of the models it has 


srobinson on DSK4SPTVN1PROD with 
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices 1277 

2 Docket No. ACR2010, Order No. 1427, Order on 

Remand, August 9, 2012. 

applied in preparing the FY 2012 ACD 

so that the Postal Service can ascertain 

that it has the most up-to-date models 

when it prepares the FY 2013 ACR. Id. 

at 6. 

Market dominant product-by-product 

costs, revenues, and volumes. 

Comprehensive cost, revenue, and 

volume data for all market dominant 

products of general applicability are 

shown directly in the FY 2012 CRA or 

ICRA. Id. at 7. 

The FY 2012 ACR includes a 

discussion by class of each market 

dominant product, including costs, 

revenues, and volumes, workshare 

discounts and passthroughs responsive 

to 39 U.S.C. 3652(b), and FY 2012 

incentive programs. Id. at 7–32. In 

addition, in response to Order No. 

1427,2 the Postal Service also provides 

a schedule of future price increases for 

Standard Mail Flats. Id. at 15–19. 

Market dominant negotiated service 

agreements. The FY 2012 ACR presents 

information on market dominant 

negotiated service agreements (NSAs). 

Id. at 32. Although there were two 

market dominant NSAs in effect for FY 

2012, Discover Financial Services and 

Valassis, 2012 mailings were only made 

under the Discover Financial Services 

NSA and no 2012 data are available for 

the Valassis NSA. Full information 

regarding the Discover Financial 

Services NSA appears in Library 

Reference USPS–FY12–30. Id. 

Service performance. The Postal 

Service notes that the Commission 

issued rules on periodic reporting of 

service performance measurement and 

customer satisfaction in FY 2010. 

Responsive information appears in 

Library Reference USPS–FY12–29. Id. at 

34. The Postal Service says it set 

aggressive on-time targets of 90 percent 

or above for all market dominant 

products and, overall, has been 

successful in continuously improving 

these scores. It asserts that its targets 

have already been met or exceeded for 

some products and in some districts, but 

says there are several instances where 

target scores have not yet been met at 

the national level. Specific reasons for 

these results are discussed in Library 

Reference USPS–FY12–29. Id. at 34. 

Customer satisfaction. The FY 2012 

ACR discusses the Postal Service’s 

approach for measuring customer 

experience and satisfaction; describes 

the methodology; presents a table with 

survey results; and compares the results 

from FY 2011 to FY 2012. Id. at 35–36. 

Competitive products. The FY 2012 

ACR provides costs, revenues, and 

volumes for competitive products of 

general applicability in the FY 2012 

CRA or ICRA. For competitive products 

not of general applicability, data are 

provided in non-public Library 

References USPS–FY12–NP2 and 

USPS–FY12–NP27. The FY 2012 ACR 

also addresses the competitive product 

pricing standards of 39 U.S.C. 3633. Id. 

at 38–43. 

Market tests; nonpostal services. The 

Postal Service also addresses the four 

market dominant market tests 

conducted during FY 2012, the single 

competitive market test conducted 

during FY 2012, and nonpostal services. 

Id. at 44–46. With respect to the latter, 

it notes that on December 11, 2012, the 

Commission issued Order No. 1575 

approving Mail Classification Schedule 

(MCS) descriptions and prices for 

nonpostal service products. The 

approved MCS includes 11 nonpostal 

service products, two of which are 

market dominant and nine of which are 

competitive. Id. at 45. It has provided 

revenue, cost, and volume data for the 

two market dominant nonpostal service 

products. Id. at 45–46. 

III. Procedural Steps 

Statutory requirements. Section 3653 

of title 39 requires the Commission to 

provide interested persons with an 

opportunity to comment on the ACR 

and to appoint an officer of the 

Commission (Public Representative) to 

represent the interests of the general 

public. The Commission hereby solicits 

public comment on the Postal Service’s 

FY 2012 ACR and on whether any rates 

or fees in effect during FY 2012 (for 

products individually or collectively) 

were not in compliance with applicable 

provisions of chapter 36 of title 39 (or 

regulations promulgated thereunder). 

Commenters addressing market 

dominant products are referred in 

particular to the applicable 

requirements (39 U.S.C. 3622(d) and (e) 

and 3626); objectives (39 U.S.C. 

3622(b)); and factors (39 U.S.C. 3622(c)). 

Commenters addressing competitive 

products are referred to 39 U.S.C. 3633. 

The Commission also invites public 

comment on the cost coverage matters 

the Postal Service addresses in its filing; 

service performance results; levels of 

customer satisfaction achieved; progress 

toward goals established in the annual 

Comprehensive Statement; and such 

other matters that may be relevant to the 

Commission’s review. Comments on 

these topics will, inter alia, assist the 

Commission in developing appropriate 

recommendations to the Postal Service 

related to the protection or promotion of 

the public policy objectives of title 39. 

Access to filing. The Commission has 

posted the publicly available portions of 

the FY 2012 ACR on its Web site at 

http://www.prc.gov. 

Comment deadlines. Comments by 

interested persons are due on or before 

February 1, 2013. Reply comments are 

due on or before February 15, 2013. The 

Commission, upon completion of its 

review of the FY 2012 ACR, public 

comments, and other data and 

information submitted in this 

proceeding, will issue its ACD. Those 

needing assistance filing electronically 

may contact the Docket Section 

supervisor at 202–789–6846 or via email 

at prc-dockets@prc.gov. Inquiries about 

access to non-public materials should 

also be directed to the Docket Section. 

Public Representative. Kenneth E. 

Richardson is designated to serve as the 

Public Representative to represent the 

interests of the general public in this 

proceeding. Neither the Public 

Representative nor any additional 

persons assigned to assist him shall 

participate in or advise as to any 

Commission decision in this proceeding 

other than in their designated capacity. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. ACR2012 to consider matters raised 

by the United States Postal Service’s FY 

2012 Annual Compliance Report. 

2. Pursuant to 35 U.S.C. 505, the 

Commission appoints Kenneth E. 

Richardson as an officer of the 

Commission (Public Representative) in 

this proceeding to represent the 

interests of the general public. 

3. Comments on the United States 

Postal Service’s FY 2012 Annual 

Compliance Report to the Commission, 

including the Comprehensive Statement 

of Postal Operations and other reports, 

are due on or before February 1, 2013. 

4. Reply comments are due on or 

before February 15, 2013. 

5. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2013–00094 Filed 1–7–13; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL SERVICE 

International Product Change—Global 

Expedited Package Services—NonPublished Rates 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 


srobinson on DSK4SPTVN1PROD with