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[Federal Register Volume 89, Number 239 (Thursday, December 12, 2024)]
[Proposed Rules]
[Pages 100440-100442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29090]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3041

[Docket Nos. RM2025-5 and K2025-491; Order No. 8239]

Streamlined Negotiated Service Agreement Review and New Postal 
Product

AGENCY: Postal Regulatory Commission.

ACTION: Notification of filing.

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SUMMARY: The Commission is acknowledging a recent Postal Service filing 
requesting the Commission

[[Page 100441]]

initiate a rulemaking to conduct advance review of a financial model, 
minimum rates, and Mail Classification Schedule changes to facilitate 
streamlined review of eligible negotiated service agreements, and a 
related request to add a new non-published rates negotiated service 
agreement product to the Competitive product list. This document 
invites public comment on the advance review portion of the Postal 
Service's filing and takes other administrative steps.

DATES: Comments are due: December 12, 2024.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Postal Service Request
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On November 22, 2024, the Postal Service filed a petition pursuant 
to 39 CFR 3041.205.\1\ Rulemakings conducted under that section concern 
advance review of proposed financial models, minimum rates, and Mail 
Classification Schedule (MCS) changes to permit streamlined review of 
non-published rates (NPR) products and standardized distinct products 
(SDPs). 39 CFR 3041.205(a). Included with the Request, the Postal 
Service proposed to add a new NPR NSA product to the Competitive 
product list pursuant to 39 CFR 3041.320. See Request at 1.
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    \1\ USPS Request to Establish New Mid-Market--Non-Published 
Rates Product (MMNPR) and Notice of Filing Materials Under Seal, 
November 22, 2024 (Request).
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II. Postal Service Request

    Background. The Commission adopted rules for streamlined option 
rulemakings in Docket No. RM2023-5 to ``address elements of 39 U.S.C. 
3642 review and 39 U.S.C. 3633 pre-implementation review that are 
broadly applicable to qualifying [negotiated service agreements (NSAs)] 
and not particular to individual qualifying NSAs.'' \2\ Specifically, 
such proceedings are used to establish eligibility criteria specifying 
the ways in which qualifying NSAs will be permitted to vary from 
existing offerings, to review a proposed financial model for qualifying 
NSAs that accounts for the financial impact of any such variations, and 
to establish minimum rates for qualifying NSAs. Order No. 7353 at 4.
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    \2\ Docket No. RM2023-5, Final Order Amending Rules Regarding 
Competitive Negotiated Service Agreements, August 9, 2024, at 4 
(Order No. 7353).
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    After a financial model, minimum rates, and MCS language are 
approved in a streamlined option rulemaking, NPR NSA products and SDP 
NSAs that conform to the approved MCS language, use the approved 
financial model, and comply with the approved minimum rates can be 
added to the Competitive product list. See 39 CFR 3041.320(c); 39 CFR 
3041.325(c). Requests to add conforming NPR NSA products to the 
Competitive product list are reviewed in public proceedings, and, if 
approved, one or more included contracts using the same contract 
template may be subsequently added to the product without requiring 
further approval from the Commission. See 39 CFR 3041.320. Requests to 
add conforming SDP NSAs to the Competitive product list are reviewed by 
the Commission in summary proceedings. 39 CFR 3041.325(c).
    Request. The Postal Service proposes MCS language, a financial 
model, and minimum rates for ``Mid-Market--Non-Published Rates'' 
contracts. See Request at 1. The Postal Service states that such 
contracts will provide discounted rates for ``existing end-to-end 
competitive products, Priority Mail Express, Priority Mail, and USPS 
Ground Advantage[supreg] on the same basis as, and without any material 
changes made to, the publicly available versions of those products.'' 
Id. at 2.
    The proposed financial model uses the ``archetype approach'' 
wherein cost coverage is demonstrated for the national volume 
distribution and each of 10 distinct volume distributions (archetypes). 
See id. at 3. When the archetype approach was first proposed, the 
Postal Service stated that it would assign each customer to an 
archetype based on a questionnaire.\3\ The Postal Service further 
stated that, within each archetype, volume is distributed across cubic 
tiers and flat rate products consistent with national distribution 
data. See Order No. 7334 at 7 (citing Docket Nos. MC2024-384 and 
CP2024-392, Response to CHIR No. 1, question 3). The Postal Service 
explained that it would not use the archetype approach for customers 
with unique circumstances or preferences that make the archetype 
approach inappropriate.\4\
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    \3\ See Docket Nos. MC2024-384 and CP2024-392, Order Adding 
Priority Mail Express, Priority Mail & USPS Ground Advantage 
Contract 123 to the Competitive Product List, August 5, 2024, at 7 
(Order No. 7334) (citing Docket Nos. MC2024-384 and CP2024-392, USPS 
Response to Chairman's Information Request No. 1, with Portions 
Filed Under Seal, July 16, 2024, question 3 (Docket Nos. MC2024-384 
and CP2024-392, Response to CHIR No. 1)).
    \4\ See Order No. 7334 at 8 (citing Docket Nos. MC2024-384 and 
CP2024-392, USPS Response to Chairman's Information Request No. 2, 
with Portions Filed Under Seal, July 29, 2024, question 2).
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    The proposed addition of a new NPR NSA product to the Competitive 
product list includes contract templates based on numerous recent 
Postal Service NSA filings. Request at 3. The proposed contract 
templates differ primarily based on how volume is calculated for 
purposes of the tiered pricing mechanism, with two templates apiece 
that rely on annual, quarterly, and rolling four-quarter volume. See 
id. at 4, 4 nn.11-12.

III. Notice and Comment

    The Commission establishes Docket Nos. RM2025-5 and K2025-491 for 
consideration of matters raised by the Request. More information on the 
Request may be accessed via the Commission's website at http://www.prc.gov. Interested persons may submit comments regarding the 
proposed financial model, minimum rates, and MCS changes filed pursuant 
to 39 CFR 3041.205 no later than December 12, 2024. Should the 
Commission authorize the financial model, minimum rates, and MCS 
language for use pursuant to 39 CFR 3041.205(f), the Commission will 
separately request public comment regarding whether the Postal 
Service's request to add the Mid-Market--Non-Published Rates product to 
the Competitive product list conforms to the then-authorized version of 
the financial model, minimum rates, and MCS language and otherwise 
satisfies the requirements of 39 CFR 3041.320(g).
    Pursuant to 39 U.S.C. 505, Christopher Mohr is designated as an 
officer of the Commission (Public Representative) to represent the 
interests of the general public in these proceedings.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. RM2025-5 and K2025-491 
for consideration of the matters raised by the USPS Request to 
Establish New Mid-Market--Non-Published Rates

[[Page 100442]]

Product (MMNPR) and Notice of Filing Materials Under Seal, filed 
November 22, 2024.
    2. Comments by interested persons concerning the financial model, 
minimum rates, and Mail Classification Schedule changes proposed 
pursuant to 39 CFR 3041.205 are due no later than December 12, 2024.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher 
Mohr to serve as an officer of the Commission (Public Representative) 
to represent the interests of the general public in these dockets.
    4. The Secretary shall arrange for the publication of this Order in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-29090 Filed 12-11-24; 8:45 am]
BILLING CODE 7710-FW-P
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