[Federal Register Volume 74, Number 70 (Tuesday, April 14, 2009)]
[Notices]
[Pages 17235-17236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-8401]


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POSTAL REGULATORY COMMISSION

[Docket No. MT2009-1; Order No. 199]


Market Test

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
notice announcing its intent to initiate a market test. This notice 
addresses procedural steps associated with this filing.

DATES: Postal Service responses to questions identified in this notice 
are due April 20, 2009. Comments are due April 27, 2009.

ADDRESSES: Submit filings 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 <a href="/cdn-cgi/l/email-protection#bdcec9d8cdd5d8d393ced5dccfdbd0dcd3fdcdcfde93dad2cb"><span class="__cf_email__" data-cfemail="95e6e1f0e5fdf0fbbbe6fdf4e7f3f8f4fbd5e5e7f6bbf2fae3">[email protected]</span></a>.

[[Page 17236]]


SUPPLEMENTARY INFORMATION:

I. Introduction

    On April 1, 2009, the Postal Service filed a formal notice, 
pursuant to 39 U.S.C. 3641(c)(1), announcing its intent to initiate a 
market test beginning May 6, 2009, of an experimental product, 
Collaborative Logistics.\1\ The Postal Service asserts that the 
Collaborative Logistics product is a competitive product. Notice at 1. 
The Notice recites the statutory authority for offering Collaborative 
Logistics as an experimental product and provides a general description 
of it. This experiment represents the initial market test conducted by 
the Postal Service under the Postal Accountability and Enhancement Act 
(PAEA).
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    \1\ Notice of the United States Postal Service of Market Test of 
Experimental Product--Collaborative Logistics, April 1, 2009 
(Notice).
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    Statutory authority. The Postal Service indicates that it plans to 
conduct a market test of the proposed Collaborative Logistics product. 
Section 3641 imposes certain conditions on experimental products which 
the Notice purports to address. Specifically, the Postal Service 
asserts that Collaborative Logistics is significantly different from 
all products within the meaning of 39 U.S.C. 3641(b)(1).
    In addition, it contends that ``the introduction or continued 
offering of the product will not create an unfair or otherwise 
inappropriate competitive advantage for the Postal Service or any 
mailer, particularly in regard to small business concerns.'' Id. at 2; 
see also 39 U.S.C. 3641(b)(2). Also, it submits that Collaborative 
Logistics is correctly classified as a competitive product. Id.; see 
also 39 U.S.C. 3641(b)(3).
    Product description. Pursuant to 39 U.S.C.3641(c)(1)(B), the Postal 
Service provides a brief description of the nature and scope of the 
market test. The Postal Service explains that, in view of its large and 
complex transportation network, ``the natural imbalance of mail volume 
between cities and the need to meet operating plans to support service 
standards makes some underutilized space on some highway transportation 
predictable.'' Id. at 2-3. Under this market test, ``the Postal Service 
would sell that available space.'' Id. at 3. Thus, it defines the 
experimental product as ``transportation of an article or multiple 
articles on a pallet or other unit load, on a space-available basis, in 
postal transportation.'' Id. at 3.
    Under the market test, ``unit loads will be picked up and delivered 
to firms, stores, hospitals, warehouses, other large customer and/or 
postal facilities.'' Id. For instance, the Postal Service specifies 
that the ``maximum pallet weight will be 2200 pounds, with articles 
secured to the pallet using shrink-wrapping and banding.'' Id. at 3. 
These unit loads are to be shipped or carried like those loads provided 
under similar offerings, often called LTL (less-than-truckload) 
shipping services. The Postal Service notes that terms are to be 
governed under negotiated contracts. Id. at 3-4.
    The Postal Service indicates that total revenues from the market 
test are not anticipated to exceed $10 million. Id. at 2. In addition, 
it confirms that the market test shall not exceed two years. Id.

II. Notice of Filing

    The Commission establishes Docket No. MT2009-1 for consideration of 
matters raised by the Notice. Interested persons may submit comments on 
whether the Postal Service's filing in the captioned docket is 
consistent with the policies of 39 U.S.C. 3641. Comments are due no 
later than April 27, 2009. The filing can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Michael J. Ravnitzky to serve as Public 
Representative in this docket.

III. Supplemental Information

    This is the first time the Postal Service has noticed an 
experimental product under the PAEA. The Commission requests the Postal 
Service to provide the following supplemental information regarding the 
market test by April 20, 2009:
    1. Please provide the Governors' decision, if any, authorizing 
initiation of the experimental product.
    2. Please describe: (a) The geographic market where the market test 
will be conducted; (b) the plan for monitoring the performance of the 
market test, including specific data items to be collected 
periodically; (c) the parameters of the market test; and (d) the 
criteria to be used to assess the success of the test.
    3. Please describe how the product, Collaborative Logistics, will 
be made available to the public.
    4. The Notice describes the product, but does not explicitly 
indicate whether the product is to be classified as a postal service. 
Please elaborate.
    5. Please identify: (a) When the ``similar product,'' referred to 
at footnote 1 of the Notice, was terminated; and (b) explain how the 
Collaborative Logistics experimental product is significantly different 
from the similar product offered previously.
    6. (a) Please provide the basis upon which the Postal Service 
concludes that offering the product will not create an unfair or 
otherwise inappropriate competitive advantage for the Postal Service or 
any mailer.
    (b) Please discuss the Postal Service's efforts to determine the 
impact on small businesses.
    7. Please identify all applicable federal and state laws and 
regulations that apply to the transportation offerings of the 
experimental product.
    8. Please explain if Collaborative Logistics will use Purchased 
Transportation (Cost Segment 14) or Vehicle Service Drivers (Cost 
Segment 8).

IV. Ordering Paragraphs

    It is Ordered:
    1. The Commission establishes Docket No. MT2009-1 for consideration 
of the matters raised by the Notice.
    2. Pursuant to 39 U.S.C. 505, Michael J. Ravnitzky is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    3. Answers to the questions set forth in the body of this Order are 
due April 20, 2009.
    4. Comments by interested persons are due no later than April 27, 
2009.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
 [FR Doc. E9-8401 Filed 4-13-09; 8:45 am]
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