[Federal Register Volume 73, Number 195 (Tuesday, October 7, 2008)]
[Notices]
[Pages 58686-58687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23733]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2008-8 and CP2008-26; Order No. 111]


Priority Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add Priority Mail Contract 1 to the Competitive Product 
List. The Postal Service has also filed a related contract. The notice 
addresses procedural steps associated with these filings.

DATES: Comments are due October 9, 2008.

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 <a href="/cdn-cgi/l/email-protection#27545342574f424909544f4655414a46496757554409404851"><span class="__cf_email__" data-cfemail="3f4c4b5a4f575a51114c575e4d59525e517f4f4d5c11585049">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Introduction

    On September 23, 2008, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the 
Priority Mail Contract 1 product to the Competitive Product List. The 
Postal Service asserts that the Priority Mail Contract 1 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. 
MC2008-8.\1\
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service to Add Priority 
Mail Contract to Competitive Product List and Notice of 
Establishment of Rates and Class Not of General Applicability, 
September 23, 2008 (Request).
---------------------------------------------------------------------------

    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 is assigned Docket No. CP2008-26. The Postal 
Service represents that the contract fits within the proposed Mail 
Classification Schedule (MCS) language and is set to expire 2 years 
from the effective date unless renewed by mutual consent.
    Request. The Request is filed pursuant to 39 U.S.C. 3642 and 39 CFR 
3020.30 et seq. The Request incorporates (1) A redacted version of the 
Governors' Decision authorizing the new product; (2) a redacted version 
of the contract; (3) requested changes in the MCS product list; (4) 
submission of supporting material under seal; and (5) certification of 
compliance with 39 U.S.C. 3633(a).\2\ Substantively, it requests that 
the Priority Mail Contract 1 product be added to the competitive 
product list. Request at 1-2. The Postal Service states the service to 
be provided under the contract will cover its attributable costs and 
make a positive contribution to coverage of institutional costs.\3\ The 
Postal Service also asserts that the contract will increase 
contribution toward the requisite 5.5 percent of the Postal Service's 
total institutional costs. As a result, the Request contends there will 
be no issue of subsidization of competitive products by market dominant 
products. Id. at 1.
---------------------------------------------------------------------------

    \2\ Attachment A to the Request consists of the redacted 
Decision of the Governors of the United States Postal Service on 
Establishment of Rates and Class Not of General Applicability for 
Priority Mail Service (Governors' Decision No. 08-11). The 
Governors' Decision includes an attachment which is an analysis of 
the proposed Priority Mail Service Contract. Attachment B is the 
redacted version of the contract. Attachment C shows the requested 
changes in the MCS product list. Attachment D provides a statement 
of supporting justification for this Request. Attachment E provides 
the certification of compliance with 39 U.S.C. 3633(a).
    \3\ See Attachment D which provides information on the impact of 
the product cost and states that Priority Mail is provided in a 
highly competitive market which affects the pricing of these 
products.
---------------------------------------------------------------------------

    The Postal Service's filing includes a redacted version of the 
contract related to the proposed new product pursuant to 39 U.S.C. 
3632(b)(3) and 39 CFR 3015.5. By its terms, the contract will expire 2 
years from the effective date, which is proposed to be 1 day after the 
Commission approves the required addition of this product to the 
product list. The Postal Service maintains that the contract pricing 
and customer-

[[Page 58687]]

specific information, as well as portions of the Governors' Decision, 
should remain confidential.
    In its Request, the Postal Service provides an analysis of the 
contract which, among other things, concludes that it is consistent 
with 39 U.S.C. 3633(a) and 39 CFR 3015.7(c). The analysis notes that 
the contract is not risk free, but concludes that the risks are 
manageable. See Attachment to Governors' Decision.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2008-8 and CP2008-26 for 
consideration of the Request pertaining to the Priority Mail Contract 1 
product and the related contract. In keeping with practice, these 
dockets are addressed on a consolidated basis for purposes of this 
order; however, future filings should be made in the specific docket in 
which issues being addressed pertain.
    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. Comments are due no later 
than October 9, 2008. The public portions of these filings can be 
accessed via the Commission's Web site (http://www.prc.gov).
    The Commission appoints Michael Ravnitzky to serve as Public 
Representative in the captioned filings.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2008-8 and CP2008-26 
for consideration of the matters raised in each docket.
    2. The Commission, pursuant to 39 U.S.C. 505, appoints Michael 
Ravnitzky 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 October 9, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E8-23733 Filed 10-6-08; 8:45 am]
BILLING CODE 7710-FW-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>