Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Rules and Regulations 11293 

1Request of the United States Postal Service to 

Add Express Mail & Priority Mail Contract 4 to 

Competitive Product List and Notice of 

Establishment of Rates and Class Not of General 

Applicability, February 20, 2009 (Request). 

2Attachment A to the Request. The analysis that 

accompanies the Governors’ Decision notes, among 

other things, that the contract is not risk free, but 

concludes that the risks are manageable. 

3Attachment B to the Request. 

4Attachment C to the Request. 

5Attachment D to the Request. 

6Attachment E to the Request. 

date payment of the amount was 

initially due, consistent with § 199.11 of 

this part. 

(4) Remedies. In the case of the failure 

of a manufacturer of a covered drug to 

make or honor an agreement under this 

paragraph (q), the Director, TMA, in 

addition to other actions referred to in 

this paragraph (q), may take any other 

action authorized by law. 

(5) Beneficiary transition provisions. 

In cases in which a pharmaceutical is 

removed from the uniform formulary or 

designated for preauthorization under 

paragraph (q)(2) of this section, the 

Director, TMA may for transitional time 

periods determined appropriate by the 

Director or for particular circumstances 

authorize the continued availability of 

the pharmaceutical in the retail 

pharmacy network or in MTF 

pharmacies for some or all beneficiaries 

as if the pharmaceutical were still on 

the uniform formulary. 

Dated: March 10, 2009. 

Patricia L. Toppings, 

OSD Federal Register Liaison Officer, 

Department of Defense. 

[FR Doc. E9–5702 Filed 3–16–09; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 110 

[Docket No. USCG–2008–0155] 

RIN 1625–AA01 

Anchorage Regulations; Port of New 

York; Correction 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule; correction. 

SUMMARY: The Coast Guard is correcting 

the preamble to a final rule that 

appeared in the Federal Register of 

March 11, 2009 (74 FR 10484). The 

preamble incorrectly referred to 

Department of Homeland Security 

Management Directive 5100.1, instead 

of Department of Homeland Security 

Management Directive 0023.1. 

DATES: Effective April 10, 2009. 

FOR FURTHER INFORMATION CONTACT: LT 

Edward Munoz, Chief, Waterways 

Management Division, telephone 718– 

354–2353. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

E9–5095 appearing on page 10484 of the 

Federal Register of Wednesday, March 

11, 2009, the following correction is 

made: 

1. On page 10486, in the second 

column, correct the ‘‘Environment’’ 

section to read: ‘‘We have analyzed this 

rule under Department of Homeland 

Security Directive 0023.1 and 

Commandant Instruction M16475.lD, 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321–4370f), and 

have concluded this action is one of a 

category of actions which do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule is categorically 

excluded, under figure 2–1, paragraph 

34(f), of the Instruction. This rule 

involves a regulation reducing the size 

of an anchorage ground. 

Under figure 2–1, paragraph (34)(f), of 

the Instruction, an environmental 

analysis checklist and a categorical 

exclusion determination are not 

required for this rule.’’ 

Dated: March 12, 2009. 

Steve G. Venckus, 

Chief, Office of Regulations and 

Administrative Law. 

[FR Doc. E9–5757 Filed 3–16–09; 8:45 am] 

BILLING CODE 4910–15–P 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3020 

[Docket Nos. MC2009–17 and CP2009–24; 

Order No. 187] 

Domestic Mail Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adding 

Express Mail & Priority Mail Contract 4 

to the competitive product list. This 

action is consistent with changes in a 

recent law governing postal operations. 

Republication of the lists of market 

dominant and competitive products is 

also consistent with new requirements 

in the law. 

DATES: Effective March 17, 2009 and is 

applicable beginning March 10, 2009. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: Regulatory 

History, 74 FR 9316 (March 2, 2009). 

The Postal Service seeks to add a new 

product identified as Express Mail & 

Priority Mail Contract 4 to the 

Competitive Product List. For the 

reasons discussed below, the 

Commission approves the Request. 

I. Background 

On February 20, 2009, the Postal 

Service filed a formal request pursuant 

to 39 U.S.C. 3642 and 39 CFR 3020.30 

et seq. to add Express Mail & Priority 

Mail Contract 4 to the Competitive 

Product List.1 The Postal Service asserts 

that the Express Mail & Priority Mail 

Contract 4 product is a competitive 

product ‘‘not of general applicability’’ 

within the meaning of 39 U.S.C. 

3632(b)(3). This Request has been 

assigned Docket No. MC2009–17. 

The Postal Service 

contemporaneously filed a contract 

related to the proposed new product 

pursuant to 39 U.S.C. 3632(b)(3) and 39 

CFR 3015.5. The contract has been 

assigned Docket No. CP2009–24. 

In support of its Request, the Postal 

Service filed the following materials: (1) 

A redacted version of the Governors’ 

Decision authorizing the new product 

which also includes an analysis of 

Express Mail & Priority Mail Contract 4 

and certification of the Governors’ 

vote; 2 (2) a redacted version of the 

contract which, among other things, 

provides that the contract will expire 3 

years from the effective date, which is 

proposed to be 1 day after the 

Commission issues all regulatory 

approvals; 3 (3) requested changes in the 

Mail Classification Schedule product 

list; 4 (4) a Statement of Supporting 

Justification as required by 39 CFR 

3020.32; 5 and (5) certification of 

compliance with 39 U.S.C. 3633(a).6

In the Statement of Supporting 

Justification, Kim Parks, Manager, Sales 

and Communications, Expedited 

Shipping, asserts that the service to be 

provided under the contract will cover 

its attributable costs, make a positive 

contribution to coverage of institutional 

costs, and will increase contribution 

toward the requisite 5.5 percent of the 

Postal Service’s total institutional costs. 

Request, Attachment D, at 1. W. Ashley 

Lyons, Manager, Corporate Financial 

Planning, Finance Department, certifies 

that the contract complies with 39 

U.S.C. 3633(a). See id. Attachment E. 

The Postal Service filed much of the 

supporting materials, including the 

unredacted Governors’ Decision and the 


dwashington3 on PROD1PC60 with RULES
11294 Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Rules and Regulations 

7PRC Order No. 184, Notice and Order 

Concerning Express Mail & Priority Mail Contract 

4 Negotiated Service Agreement, February 24, 2009 

(Order No. 184). 

8Notice of the United States Postal Service of 

Filing Under Seal of Errata to Documentation, 

March 3, 2009; Notice of the United States Postal 

Service of Filing Under Seal of Second Errata to 

Documentation, March 10, 2009. 

9Public Representative Comments in Response to 

United States Postal Service Request to Add 

Express Mail & Priority Mail Contract 4 to 

Competitive Product List and Notice of 

Establishment of Rates and Class Not of General 

Applicability, March 5, 2009 (Public Representative 

Comments). 

unredacted contract, under seal. In its 

Request, the Postal Service maintains 

that the contract and related financial 

information, including the customer’s 

name and the accompanying analyses 

that provide prices, terms, conditions, 

and financial projections, should remain 

confidential. Id. at 2–3. 

In Order No. 184, the Commission 

gave notice of the two dockets, 

appointed a public representative, and 

provided the public with an opportunity 

to comment.7

On March 3 and 10, 2009, the Postal 

Service filed errata to correct certain 

cost and revenue data.8

II. Comments 

Comments were filed by the Public 

Representative.9 No filings were 

submitted by other interested parties. 

The Public Representative states that the 

Postal Service’s filing complies with 

applicable Commission rules of practice 

and procedure, and concludes that the 

Express Mail & Priority Mail Contract 4 

agreement comports with the 

requirements of title 39. Public 

Representative Comments at 4. He 

further states that the agreement appears 

beneficial to the general public. Id. at 1. 

The Public Representative notes that 

the Postal Service has provided 

adequate justification for maintaining 

confidentiality in this case. Id. at 3. He 

also points out several contractual 

provisions that he believes are mutually 

beneficial to the parties and general 

public. Id. 

III. Commission Analysis 

The Commission has reviewed the 

Request, the contract, the financial 

analysis filed under seal, and the 

comments filed by the Public 

Representative. 

Statutory requirements. The 

Commission’s statutory responsibilities 

in this instance entail assigning Express 

Mail & Priority Mail Contract 4 to either 

the Market Dominant Product List or to 

the Competitive Product List. 39 U.S.C. 

3642. As part of this responsibility, the 

Commission also reviews the proposal 

for compliance with the Postal 

Accountability and Enhancement Act 

(PAEA) requirements. This includes, for 

proposed competitive products, a 

review of the provisions applicable to 

rates for competitive products. 39 U.S.C. 

3633. 

Product list assignment. In 

determining whether to assign Express 

Mail & Priority Mail Contract 4 as a 

product to the Market Dominant 

Product List or the Competitive Product 

List, the Commission must consider 

whether 

the Postal Service exercises sufficient 

market power that it can effectively set the 

price of such product substantially above 

costs, raise prices significantly, decrease 

quality, or decrease output, without risk of 

losing a significant level of business to other 

firms offering similar products. 

39 U.S.C. 3642(b)(1). If so, the product 

will be categorized as market dominant. 

The competitive category of products 

shall consist of all other products. 

The Commission is further required to 

consider the availability and nature of 

enterprises in the private sector engaged 

in the delivery of the product, the views 

of those who use the product, and the 

likely impact on small business 

concerns. 39 U.S.C. 3642(b)(3). 

The Postal Service asserts that its 

bargaining position is constrained by 

the existence of other shippers who can 

provide similar services, thus 

precluding it from taking unilateral 

action to increase prices without the 

risk of losing volume to private 

companies. Request, Attachment D, 

para. (d). The Postal Service also 

contends that it may not decrease 

quality or output without risking the 

loss of business to competitors that offer 

similar expedited delivery services. Id. 

It further states that the contract partner 

supports the addition of the contract to 

the Competitive Product List to 

effectuate the negotiated contractual 

terms. Id. at para. (g). Finally, the Postal 

Service states that the market for 

expedited delivery services is highly 

competitive and requires a substantial 

infrastructure to support a national 

network. It indicates that large carriers 

serve this market. Accordingly, the 

Postal Service states that it is unaware 

of any small business concerns that 

could offer comparable service for this 

customer. Id. at para. (h). 

No commenter opposes the proposed 

classification of Express Mail & Priority 

Mail Contract 4 as competitive. Having 

considered the statutory requirements 

and the support offered by the Postal 

Service, the Commission finds that 

Express Mail & Priority Mail Contract 4 

is appropriately classified as a 

competitive product and should be 

added to the Competitive Product List. 

Cost considerations. The Postal 

Service presents a financial analysis 

showing that Express Mail & Priority 

Mail Contract 4 results in cost savings 

while ensuring that the contract covers 

its attributable costs, does not result in 

subsidization of competitive products 

by market dominant products, and 

increases contribution from competitive 

products. 

Based on the data submitted, the 

Commission finds that Express Mail & 

Priority Mail Contract 4 should cover its 

attributable costs (39 U.S.C. 3633(a)(2)), 

should not lead to the subsidization of 

competitive products by market 

dominant products (39 U.S.C. 

3633(a)(1)), and should have a positive 

effect on competitive products’ 

contribution to institutional costs (39 

U.S.C. 3633(a)(3)). Thus, an initial 

review of the proposed Express Mail & 

Priority Mail Contract 4 indicates that it 

comports with the provisions applicable 

to rates for competitive products. 

Other considerations. The Postal 

Service shall promptly notify the 

Commission of the scheduled 

termination date of the agreement. 

If the agreement terminates earlier 

than anticipated, the Postal Service 

shall inform the Commission prior to 

the new termination date. The 

Commission will then remove the 

product from the Mail Classification 

Schedule at the earliest possible 

opportunity. 

In conclusion, the Commission 

approves Express Mail & Priority Mail 

Contract 4 as a new product. The 

revision to the Competitive Product List 

is shown below the signature of this 

Order and is effective upon issuance of 

this order. 

IV. Ordering Paragraphs 

It is Ordered: 

1. Express Mail & Priority Mail 

Contract 4 (MC2009–17 and CP2009–24) 

is added to the Competitive Product List 

as a new product under Negotiated 

Service Agreements, Domestic. 

2. The Postal Service shall notify the 

Commission of the scheduled 

termination date and update the 

Commission if the termination date 

occurs prior to that date, as discussed in 

this order. 

3. The Secretary shall arrange for the 

publication of this order in the Federal 

Register. 

By the Commission. 

Steven W. Williams, 

Secretary. 

List of Subjects in 39 CFR Part 3020 

Administrative practice and 

procedure; Postal Service. 


dwashington3 on PROD1PC60 with RULES
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Rules and Regulations 11295 

■ For the reasons stated in the preamble, 

under the authority at 39 U.S.C. 503, the 

Postal Regulatory Commission amends 

39 CFR part 3020 as follows: 

PART 3020—PRODUCT LISTS 

■ 1. The authority citation for part 3020 

continues to read as follows: 

Authority: 39 U.S.C. 503; 3622; 3631; 3642; 

3682. 

■ 2. Revise Appendix A to subpart A of 

part 3020—Mail Classification to read as 

follows: 

Appendix A to Subpart A of Part 

3020—Mail Classification Schedule 

Part A—Market Dominant Products 

1000 Market Dominant Product List 

First-Class Mail 

Single-Piece Letters/Postcards 

Bulk Letters/Postcards 

Flats 

Parcels 

Outbound Single-Piece First-Class Mail 

International 

Inbound Single-Piece First-Class Mail 

International 

Standard Mail (Regular and Nonprofit) 

High Density and Saturation Letters 

High Density and Saturation Flats/Parcels 

Carrier Route 

Letters 

Flats 

Not Flat-Machinables (NFMs)/Parcels 

Periodicals 

Within County Periodicals 

Outside County Periodicals 

Package Services 

Single-Piece Parcel Post 

Inbound Surface Parcel Post (at UPU rates) 

Bound Printed Matter Flats 

Bound Printed Matter Parcels 

Media Mail/Library Mail 

Special Services 

Ancillary Services 

International Ancillary Services 

Address List Services 

Caller Service 

Change-of-Address Credit Card 

Authentication 

Confirm 

International Reply Coupon Service 

International Business Reply Mail Service 

Money Orders 

Post Office Box Service 

Negotiated Service Agreements 

HSBC North America Holdings Inc. 

Negotiated Service Agreement 

Bookspan Negotiated Service Agreement 

Bank of America corporation Negotiated 

Service Agreement 

The Bradford Group Negotiated Service 

Agreement 

Inbound International 

Canada Post—United States Postal Service 

Contractual Bilateral Agreement for 

Inbound Market Dominant Services 

Market Dominant Product Descriptions 

First-Class Mail 

[Reserved for Class Description] 

Single-Piece Letters/Postcards 

[Reserved for Product Description] 

Bulk Letters/Postcards 

[Reserved for Product Description] 

Flats 

[Reserved for Product Description] 

Parcels 

[Reserved for Product Description] 

Outbound Single-Piece First-Class Mail 

International 

[Reserved for Product Description] 

Inbound Single-Piece First-Class Mail 

International 

[Reserved for Product Description] 

Standard Mail (Regular and Nonprofit) 

[Reserved for Class Description] 

High Density and Saturation Letters 

[Reserved for Product Description] 

High Density and Saturation Flats/Parcels 

[Reserved for Product Description] 

Carrier Route 

[Reserved for Product Description] 

Letters 

[Reserved for Product Description] 

Flats 

[Reserved for Product Description] 

Not Flat-Machinables (NFMs)/Parcels 

[Reserved for Product Description] 

Periodicals 

[Reserved for Class Description] 

Within County Periodicals 

[Reserved for Product Description] 

Outside County Periodicals 

[Reserved for Product Description] 

Package Services 

[Reserved for Class Description] 

Single-Piece Parcel Post 

[Reserved for Product Description] 

Inbound Surface Parcel Post (at UPU rates) 

[Reserved for Product Description] 

Bound Printed Matter Flats 

[Reserved for Product Description] 

Bound Printed Matter Parcels 

[Reserved for Product Description] 

Media Mail/Library Mail 

[Reserved for Product Description] 

Special Services 

[Reserved for Class Description] 

Ancillary Services 

[Reserved for Product Description] 

Address Correction Service 

[Reserved for Product Description] 

Applications and Mailing Permits 

[Reserved for Product Description] 

Business Reply Mail 

[Reserved for Product Description] 

Bulk Parcel Return Service 

[Reserved for Product Description] 

Certified Mail 

[Reserved for Product Description] 

Certificate of Mailing 

[Reserved for Product Description] 

Collect on Delivery 

[Reserved for Product Description] 

Delivery Confirmation 

[Reserved for Product Description] 

Insurance 

[Reserved for Product Description] 

Merchandise Return Service 

[Reserved for Product Description] 

Parcel Airlift (PAL) 

[Reserved for Product Description] 

Registered Mail 

[Reserved for Product Description] 

Return Receipt 

[Reserved for Product Description] 

Return Receipt for Merchandise 

[Reserved for Product Description] 

Restricted Delivery 

[Reserved for Product Description] 

Shipper-Paid Forwarding 

[Reserved for Product Description] 

Signature Confirmation 

[Reserved for Product Description] 

Special Handling 

[Reserved for Product Description] 

Stamped Envelopes 

[Reserved for Product Description] 

Stamped Cards 

[Reserved for Product Description] 

Premium Stamped Stationery 

[Reserved for Product Description] 

Premium Stamped Cards 

[Reserved for Product Description] 

International Ancillary Services 

[Reserved for Product Description] 

International Certificate of Mailing 

[Reserved for Product Description] 

International Registered Mail 

[Reserved for Product Description] 

International Return Receipt 

[Reserved for Product Description] 

International Restricted Delivery 

[Reserved for Product Description] 

Address List Services 

[Reserved for Product Description] 

Caller Service 

[Reserved for Product Description] 

Change-of-Address Credit Card 

Authentication 

[Reserved for Product Description] 

Confirm 

[Reserved for Product Description] 

International Reply Coupon Service 

[Reserved for Product Description] 

International Business Reply Mail Service 

[Reserved for Product Description] 

Money Orders 

[Reserved for Product Description] 

Post Office Box Service 

[Reserved for Product Description] 

Negotiated Service Agreements 

[Reserved for Class Description] 

HSBC North America Holdings Inc. 

Negotiated Service Agreement 

[Reserved for Product Description] 

Bookspan Negotiated Service Agreement 

[Reserved for Product Description] 

Bank of America Corporation Negotiated 

Service Agreement 

The Bradford Group Negotiated Service 

Agreement 

Part B—Competitive Products 

Competitive Product List 

Express Mail 

Express Mail 

Outbound International Expedited Services 

Inbound International Expedited Services 

Inbound International Expedited Services 1 

(CP2008–7) 

Inbound International Expedited Services 2 

(MC2009–10 and CP2009–12) 

Priority Mail 

Priority Mail 

Outbound Priority Mail International 

Inbound Air Parcel Post 

Parcel Select 

Parcel Return Service 

International 

International Priority Airlift (IPA) 

International Surface Airlift (ISAL) 

International Direct Sacks—M-Bags 

Global Customized Shipping Services 


dwashington3 on PROD1PC60 with RULES
11296 Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Rules and Regulations 

1Request of the United States Postal Service to 

Add Express Mail & Priority Mail Contract 5 to 

Competitive Product List and Notice of 

Establishment of Rates and Class Not of General 

Applicability, February 20, 2009 (Request). 

2Attachment A to the Request. The analysis that 

accompanies the Governors’ Decision notes, among 

other things, that the contract is not risk free, but 

concludes that the risks are manageable. 

3Attachment B to the Request. 

4Attachment C to the Request. 

5Attachment D to the Request. 

6Attachment E to the Request. 

Inbound Surface Parcel Post (at non-UPU 

rates) 

Canada Post—United States Postal service 

Contractual Bilateral Agreement for 

Inbound Competitive Services (MC2009– 

8 and CP2009–9) 

International Money Transfer Service 

International Ancillary Services 

Special Services 

Premium Forwarding Service 

Negotiated Service Agreements 

Domestic 

Express Mail Contract 1 (MC2008–5) 

Express Mail Contract 2 (MC2009–3 and 

CP2009–4) 

Express Mail Contract 3 (MC2009–15 and 

CP2009–21) 

Express Mail & Priority Mail Contract 1 

(MC2009–6 and CP2009–7) 

Express Mail & Priority Mail Contract 2 

(MC2009–12 and CP2009–14) 

Express Mail & Priority Mail Contract 3 

(MC2009–13 and CP2009–17) 

Express Mail & Priority Mail Contract 4 

(MC2009–17 and CP2009–24) 

Parcel Return Service Contract 1 (MC2009– 

1 and CP2009–2) 

Priority Mail Contract 1 (MC2008–8 and 

CP2008–26) 

Priority Mail Contract 2 (MC2009–2 and 

CP2009–3) 

Priority Mail Contract 3 (MC2009–4 and 

CP2009–5) 

Priority Mail Contract 4 (MC2009–5 and 

CP2009–6) 

Outbound International 

Global Direct Contracts (MC2009–9, 

CP2009–10, and CP2009–11) 

Global Expedited Package Services (GEPS) 

Contracts 

GEPS 1 (CP2008–5, CP2008–11, CP2008– 

12, and CP2008–13, CP2008–18, 

CP2008–19, CP2008–20, CP2008–21, 

CP2008–22, CP2008–23, and CP2008–24) 

Global Plus Contracts 

Global Plus 1 (CP2008–9 and CP2008–10) 

Global Plus 2 (MC2008–7, CP2008–16 and 

CP2008–17) 

Inbound International 

Inbound Direct Entry Contracts with 

Foreign Postal Administrations 

(MC2008–6, CP2008–14 and CP2008–15) 

International Business Reply Service 

Competitive Contract 1 (MC2009–14 and 

CP2009–20) 

Competitive Product Descriptions 

Express Mail 

[Reserved for Group Description] 

Express Mail 

[Reserved for Product Description] 

Outbound International Expedited Services 

[Reserved for Product Description] 

Inbound International Expedited Services 

[Reserved for Product Description] 

Priority 

[Reserved for Product Description] 

Priority Mail 

[Reserved for Product Description] 

Outbound Priority Mail International 

[Reserved for Product Description] 

Inbound Air Parcel Post 

[Reserved for Product Description] 

Parcel Select 

[Reserved for Group Description] 

Parcel Return Service 

[Reserved for Group Description] 

International 

[Reserved for Group Description] 

International Priority Airlift (IPA) 

[Reserved for Product Description] 

International Surface Airlift (ISAL) 

[Reserved for Product Description] 

International Direct Sacks—M-Bags 

[Reserved for Product Description] 

Global Customized Shipping Services 

[Reserved for Product Description] 

International Money Transfer Service 

[Reserved for Product Description] 

Inbound Surface Parcel Post (at non-UPU 

rates) 

[Reserved for Product Description] 

International Ancillary Services 

[Reserved for Product Description] 

International Certificate of Mailing 

[Reserved for Product Description] 

International Registered Mail 

[Reserved for Product Description] 

International Return Receipt 

[Reserved for Product Description] 

International Restricted Delivery 

[Reserved for Product Description] 

International Insurance 

[Reserved for Product Description] 

Negotiated Service Agreements 

[Reserved for Group Description] 

Domestic 

[Reserved for Product Description] 

Outbound International 

[Reserved for Group Description] 

Part C—Glossary of Terms and Conditions 

[Reserved] 

Part D—Country Price Lists for International 

Mail [Reserved] 

[FR Doc. E9–5672 Filed 3–16–09; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3020 

[Docket Nos. MC2009–18 and CP2009–25; 

Order No. 188] 

Domestic Mail Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adding a 

new product identified as Express Mail 

& Priority Mail Contract 5 to the 

Competitive Product List. This action is 

consistent with changes in a recent law 

governing postal operations and a recent 

Postal Service request. Republication of 

the lists of market dominant and 

competitive products is also consistent 

with new requirements in the law. 

DATES: Effective March 17, 2009 and is 

applicable beginning March 10, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: Regulatory 

History, 74 FR 9317 (March 3, 2009). 

The Postal Service seeks to add a new 

product identified as Express Mail & 

Priority Mail Contract 5 to the 

Competitive Product List. For the 

reasons discussed below, the 

Commission approves the Request. 

I. Background 

On February 20, 2009, the Postal 

Service filed a formal request pursuant 

to 39 U.S.C. 3642 and 39 CFR 3020.30 

et seq. to add Express Mail & Priority 

Mail Contract 5 to the Competitive 

Product List.1 The Postal Service asserts 

that the Express Mail & Priority Mail 

Contract 5 product is a competitive 

product ‘‘not of general applicability’’ 

within the meaning of 39 U.S.C. 

3632(b)(3). This Request has been 

assigned Docket No. MC2009–18. 

The Postal Service 

contemporaneously filed a contract 

related to the proposed new product 

pursuant to 39 U.S.C. 3632(b)(3) and 39 

CFR 3015.5. The contract has been 

assigned Docket No. CP2009–25. 

In support of its Request, the Postal 

Service filed the following materials: (1) 

A redacted version of the Governors’ 

Decision authorizing the new product 

which also includes an analysis of 

Express Mail & Priority Mail Contract 5 

and certification of the Governors’ 

vote; 2 (2) a redacted version of the 

contract which, among other things, 

provides that the contract will expire 3 

years from the effective date, which is 

proposed to be 1 day after the 

Commission issues all regulatory 

approvals; 3 (3) requested changes in the 

Mail Classification Schedule product 

list; 4 (4) a Statement of Supporting 

Justification as required by 39 CFR 

3020.32; 5 and (5) certification of 

compliance with 39 U.S.C. 3633(a).6

In the Statement of Supporting 

Justification, Kim Parks, Manager, Sales 

and Communications, Expedited 

Shipping, asserts that the service to be 

provided under the contract will cover 

its attributable costs, make a positive 

contribution to coverage of institutional 

costs, and will increase contribution 

toward the requisite 5.5 percent of the 

Postal Service’s total institutional costs. 

Request, Attachment D, at 1. W. Ashley 

Lyons, Manager, Corporate Financial 


dwashington3 on PROD1PC60 with RULES