[Federal Register Volume 78, Number 4 (Monday, January 7, 2013)]
[Notices]
[Pages 963-964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00008]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2013-27 and CP2013-35; Order No. 1601]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Global Expedited Package Services--Non-
Published Rates 4 to the competitive product list. This notice informs 
the public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are Due: January 8, 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. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., and 
Order No. 630, the Postal Service filed a formal request and associated 
supporting information to add Global Expedited Package Services--Non-
Published Rates 4 (GEPS-NPR 4) to the competitive product list.\1\ The 
Postal Service states that the addition is necessary due to changes in 
the non-discounted published postage for Express Mail International 
(EMI), Priority Mail International (PMI), and Global Express Guaranteed 
(GXG), as well as the creation of a new GEPS-NPR 4 model contract and 
accompanying financial model that differ from the GEPS-NPR 3 model 
contract and financial model. Request at 2-3. The Request has been 
assigned Docket No. MC2013-27.
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    \1\ Request of the United States Postal Service to Add Global 
Expedited Package Services--Non-Published Rates 4 (GEPS-NPR 4) to 
the Competitive Products List and Notice of Filing GEPS-NPR 4 Model 
Contract and Application for Non-Public Treatment of Materials Filed 
Under Seal, December 21, 2012 (Request).
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    The Postal Service contemporaneously filed a redacted version of 
the GEPS-NPR 4 model contract related to the proposed new product under 
39 U.S.C. 3632(b)(3) and 39 CFR 3015.5. Id. Attachment 4. The instant 
contract has been assigned Docket No. CP2013-35.
    Request. To support its Request, the Postal Service filed the 
following attachments:
    <bullet> Attachment 1--an application for non-public treatment of 
materials filed under seal;
    <bullet> Attachment 2A--a redacted version of Governors' Decision 
No. 11-6;
    <bullet> Attachment 2B--a revised version of MCS 2510.8 GEPS-NPR;
    <bullet> Attachment 2C--a redacted version of Management's Analysis 
of the Prices and Methodology for Determining Prices For Negotiated 
Service Agreements Under Global Expedited Package Services--Non-
Published Rates 4;
    <bullet> Attachment 2D--a list of Maximum and Minimum Prices for 
EMI, PMI, and GXG under GEPS-NPR 4 Contracts;
    <bullet> Attachment 2E--a certified statement concerning prices for 
applicable negotiated service agreements under GEPS-NPR 4 rates, as 
required by 39 CFR 3015(c)(2);
    <bullet> Attachment 3--a Statement of Supporting Justification 
similar to the Statement of Supporting Justification used to support 
the classification of GEPS-NPR 1, and as required by 39 CFR 3020.32;
    <bullet> Attachment 4--a redacted version of the GEPS-NPR 4 model 
contract.
    In the Statement of Supporting Justification, Frank Cebello, 
Executive Director, Global Business Management, asserts that the 
product is designed to increase the efficiency of the Postal Service's 
process, as well as enhance its ability to compete in the marketplace. 
Id. Attachment 3 at 1. Mr. Cebello states that the product is also 
designed to enable the Postal Service's Global Business sales force to 
rapidly establish, based on various factors, whether a GEPS-type 
agreement will be profitable

[[Page 964]]

enough to justify establishing an incentive-based mailing plan with the 
customer for EMI, PMI, and GXG (if the customer uses Global Shipping 
Software). Id. Attachment 3 at 2. In order to accomplish this, the 
GEPS-NPR 4 product revises the product designs for GEPS-NPR 1, GEPS-NPR 
2, and GEPS-NPR 3 to include actual rates that will cover their costs, 
and will eliminate the need for each customer agreement to be added to 
the competitive product list individually. Id. Attachment 3 at 2, 5. 
Mr. Cebello contends that the financial modeling in support of the 
GEPS-NPR 4 product demonstrates that the product will cover its 
attributable costs, make a positive contribution to covering 
institutional costs, as well as not be subsidized by market dominant 
products. Id. Attachment 3 at 3.
    Related model contract. The Postal Service included a redacted 
version of the related model contract with the Request. Id. Attachment 
4. The Postal Service will notify each customer of the contract's 
effective date no later than 30 days after receiving the signed 
agreement from the customer. Id. at 7. Each contract will expire 1 year 
from the effective date unless terminated sooner. Id. The Postal 
Service filed much of the supporting materials, including the related 
model contract, under seal. Id. Attachment 1. It maintains that the 
redacted portions of the materials should remain confidential as 
sensitive business information. Id. at 4. This information includes 
sensitive commercial information concerning the incentive discounts and 
their formulation, applicable cost coverage, non-published rates, as 
well as some customer-identifying information. Id. The Postal Service 
asks the Commission to protect customer-identifying information from 
public disclosure for 10 years after the date of filing with the 
Commission, unless an order is entered to extend the duration of that 
status. Id. at 9.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2013-27 and CP2013-35 to 
consider the Request pertaining to the proposed GEPS-NPR 4 product.
    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 3015.5, and 39 CFR 
part 3020, subpart B. Comments are due no later than January 8, 2013. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints James F. Callow to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-27 and CP2013-35 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interests of the general public in these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than January 8, 2013.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-00008 Filed 1-4-13; 8:45 am]
BILLING CODE 7710-FW-P