53002 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Notices 

1Notice of United States Postal Service of Filing 

Six Functionally Equivalent Global Expedited 

Package Services 3 Negotiated Service Agreements 

and Application for Non–Public Treatment of 

Materials Filed Under Seal, August 18, 2010 

(Notice). 

2 Docket No. CP2009–50, Order Granting 

Clarification and Adding Global Expedited Package 

Services 2 to the Competitive Product List, August 

28, 2009 (Order No. 290). 

Title: Application for 10–Point 

Veteran Preference. 

OMB Number: 3206–0001. 

Affected Public: Federal Employees, 

retirees, individuals and households. 

Number of Respondents: 18,418. 

Estimated Time per Respondent: 10 

minutes/hour. 

Total Burden Hours: 3,070 hours. 

U.S. Office of Personnel Management. 

John Berry, 

Director. 

[FR Doc. 2010–21541 Filed 8–27–10; 8:45 am] 

BILLING CODE 6325–38–P 

POSTAL REGULATORY COMMISSION 

[Docket Nos. CP2010–96, CP2010–97, 

CP2010–98, CP2010–99, CP2010–100, and 

CP2010–101; Order No. 520] 

New Postal Products 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently—filed Postal Service request to 

add six Global Expedited Package 

Services 3 (MC2010–28) contracts to the 

competitive product list. This notice 

addresses procedural steps associated 

with the filing. 

DATES: Comments are due: August 27, 

2010. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. Commenters who cannot 

submit their views electronically should 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section 

by telephone for advice on alternatives 

to electronic filing. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

stephen.sharfman@prc.gov or 202–789– 

6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Notice of Filing 

III. Ordering Paragraphs 

I. Introduction 

On August 18, 2010, the Postal 

Service filed a notice announcing that it 

has entered into six additional Global 

Expedited Package Services 3 (GEPS 3) 

contracts.1 The Postal Service believes 

the instant contracts are functionally 

equivalent to previously submitted 

GEPS contracts, and are supported by 

Governors’ Decision No. 08–7, attached 

to the Notice and originally filed in 

Docket No. CP2008–4. Id. at 1–2, 

Attachment 3. The Notice also explains 

that Order No. 86, which established 

GEPS 1 as a product, also authorized 

functionally equivalent agreements to be 

included within the product, provided 

that they meet the requirements of 39 

U.S.C. 3633. Id. at 2. In Order No. 290, 

the Commission approved the GEPS 2 

product.2 In Order No. 503, the 

Commission approved the GEPS 3 

product. Additionally, the Postal 

Service requested to have the contract in 

Docket No. CP2010–71 serve as the 

baseline contract for future functional 

equivalence analyses of the GEPS 3 

product. 

The instant contracts. The Postal 

Service filed the instant contracts 

pursuant to 39 CFR 3015.5. In addition, 

the Postal Service contends that each 

contract is in accordance with Order No. 

86. The term of each contract is one year 

from the date the Postal Service notifies 

the customer that all necessary 

regulatory approvals have been 

received. Notice at 3. 

In support of its Notice, the Postal 

Service filed four attachments as 

follows: 

1. Attachments 1A, 1B, 1C ,1D, 1E and 

1F—redacted copies of the six contracts 

and applicable annexes; 

2. Attachments 2A, 2B, 2C, 2D, 2E and 

2F—certified statements required by 39 

CFR 3015.5(c)(2) for each of the six 

contracts; 

3. Attachment 3—a redacted copy of 

Governors’ Decision No. 08–7 which 

establishes prices and classifications for 

GEPS contracts, a description of 

applicable GEPS contracts, formulas for 

prices, an analysis of the formulas, and 

certification of the Governors’ vote; and 

4. Attachment 4—an application for 

non–public treatment of materials to 

maintain redacted portions of the 

contracts and supporting documents 

under seal. 

The Notice advances reasons why the 

instant GEPS 3 contracts fit within the 

Mail Classification Schedule language 

for GEPS. The Postal Service identifies 

customer–specific information and 

general contract terms that distinguish 

the instant contracts from the baseline 

GEPS 3 agreement all of which are 

highlighted in the Notice. Id. at 4–5. 

These modifications as described in the 

Postal Service’s Notice apply to each of 

the instant contracts. 

The Postal Service contends that the 

instant contracts are functionally 

equivalent to the baseline contract for 

GEPS 3 and share the same cost and 

market characteristics as the previously 

filed GEPS contracts. Id. at 4. It states 

that the differences including updates 

and volume or postage commitments of 

customers, do not alter the contracts’ 

functional equivalency. Id. The Postal 

Service asserts that ‘‘[b]ecause the 

agreements incorporate the same cost 

attributes and methodology, the relevant 

characteristics of these six GEPS 

contracts are similar, if not the same, as 

the relevant characteristics of previously 

filed contracts.’’ Id. 

The Postal Service concludes that its 

filings demonstrate that each of the new 

GEPS 3 contracts complies with the 

requirements of 39 U.S.C. 3633 and is 

functionally equivalent to the baseline 

GEPS 3 contract. Therefore, it requests 

that the instant contracts be included 

within the GEPS 3 product. Id. at 5. 

II. Notice of Filing 

The Commission establishes Docket 

Nos. CP2010–96 through CP2010–101 

for consideration of matters related to 

the contracts identified in the Postal 

Service’s Notice. 

These dockets are addressed on a 

consolidated basis for purposes of this 

order. Filings with respect to a 

particular contract should be filed in 

that docket. 

Interested persons may submit 

comments on whether the Postal 

Service’s contracts are consistent with 

the policies of 39 U.S.C. 3632, 3633, or 

3642. Comments are due no later than 

August 27, 2010. The public portions of 

these filings can be accessed via the 

Commission’s Web site (http:// 

www.prc.gov.) 

The Commission appoints Paul L. 

Harrington to serve as Public 

Representative in the captioned 

proceedings. 

III. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

Nos. CP2010–96 through CP2010–101 

for consideration of matters raised by 

the Postal Service’s Notice. 

2. Comments by interested persons in 

these proceedings are due no later than 

August 27, 2010. 

3. Pursuant to 39 U.S.C. 505, Paul L. 

Harrington is appointed to serve as the 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in these 

proceedings. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Notices 53003 

1Request of the United States Postal Service to 

Transfer Commercial Standard Mail Parcels to the 

Competitive Product List, August 16, 2010 

(Request). 

2See Docket No. R2010–4, Exigent Request of the 

United States Postal Service, July 6, 2010. 

3As proposed in Docket No. R2010–4, current 

commercial and nonprofit Standard Mail NFMs 

would become Standard Mail Marketing Parcels. 

Because of addressing standards, some current 

customers using commercial Standard Mail NFMs 

for fulfillment would be required to use commercial 

Standard Mail Fulfillment Parcels. Request at 2–3. 

4 Id., Attachment C, Competitive Products, 

2115.2, Size and Weight Limitations; see also id., 

2115.6 Prices, Machinable Lightweight Parcels 

(greater than 3.3 ounces) and Irregular Lightweight 

Parcels (3.3 ounces or less) and (greater than 3.3 

ounces). 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2010–21423 Filed 8–27–10; 8:45 am] 

BILLING CODE 7710–FW–S 

POSTAL REGULATORY COMMISSION 

[Docket No.MC2010–36; Order No. 521] 

Product List Transfer 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently–filed Postal Service request to 

transfer commercial Standard Mail 

Fulfillment Parcels from the market 

dominant product list to the competitive 

product list. This notice addresses 

procedural steps associated with the 

filing. 

DATES: Comments are due September 

17, 2010; reply comments are due 

October 15, 2010. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. Commenters who cannot 

submit their views electronically should 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section 

by telephone for advice on alternatives 

to electronic filing. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

stephen.sharfman@prc.gov or 202–789– 

6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Notice of Filing 

III. Ordering Paragraphs 

I. Introduction 

Pursuant to 39 U.S.C. 3642 and 39 

CFR 3020 et seq., on August 16, 2010, 

the Postal Service filed a request to 

transfer its commercial Standard Mail 

Fulfillment Parcels product from the 

market dominant product list to the 

competitive product list in the Mail 

Classification Schedule (MCS) on file 

with the Commission.1

The Postal Service states that, to avoid 

confusion, this filing is based on the 

assumption that classification changes 

proposed in Docket No. R2010–4 will be 

approved by the Commission prior to 

consideration of this request.2 Request 

at 1, n.1. In that docket, the Postal 

Service proposes to segment Standard 

Mail parcels into two main categories: 

Marketing Parcels and Fulfillment 

Parcels. Current commercial and 

nonprofit Standard Mail Parcels would 

become Standard Mail Fulfillment 

Parcels.3 The Postal Service does not 

propose to transfer nonprofit Standard 

Mail Fulfillment Parcels. Request at 1, 

n.1. The Postal Service suggests that 

upon their transfer to the competitive 

product list, the Standard Mail 

Fulfillment Parcels would be classified 

as a ‘‘Lightweight’’ subcategory of the 

Parcel Select product. Id. at 1. The 

minimum weight would be less than 16 

ounces.4

As required by 39 CFR 3020.31 of the 

Commission’s rules, a copy of 

Governors’ Resolution No. 10–4 is 

included with the Request as 

Attachment A. Attachment B to the 

Request contains the Statement of 

Supporting Justification required by 39 

CFR 3020.32 of the Commission’s rules. 

Attachment C is the proposed draft MCS 

language and prices incorporating the 

language proposed in Docket No. 

R2010–4 as if already approved by the 

Commission with proposed additions 

and deletions for this Request. 

The Postal Service summarizes the 

required Statement of Supporting 

Justification by noting that the current 

classification of parcels weighing less 

than one pound as market dominant 

products, and parcels weighing more 

than one pound as competitive 

products, produces a misalignment in 

the marketplace. Competitors make no 

such distinction and can offer seamless 

shipping options. The transfer would 

allow the Postal Service to offer similar 

comprehensive shipping solutions 

including contracts covering all parcels 

regardless of weight. Id. at 3. 

The Postal Service’s Statement of 

Supporting Justification offers an 

explanation why the transfer to the 

competitive product list will not result 

in violation of the standards in 39 

U.S.C. 3633. Id., Attachment B, at 1. The 

Postal Service notes that in FY 2009, 

commercial Standard Mail Fulfillment 

Parcels and other Standard Mail parcel 

categories had a collective cost coverage 

of 75.23 percent. It requests a 23.3 

percent rate increase in Docket No. 

R2010–4 for Standard Mail parcel 

categories which, if approved, will yield 

a cost coverage in excess of 100 percent. 

Thus, it contends that commercial 

Standard Mail Parcels, if treated as a 

subcategory of Parcel Select, would 

satisfy 39 U.S.C. 3633(a)(1) and (2). Id. 

at 2. 

The Statement of Supporting 

Justification seeks to demonstrate, 

pursuant to 39 CFR 3020.32(d), that the 

requested change does not propose to 

classify as competitive a product over 

which the Postal Service exercises 

sufficient market power that it can, 

without losing a significant level of 

business, set the price of the product 

substantially above costs, raise prices 

significantly, decrease quality, or 

decrease output. Id. at 3–7. The 

Statement of Justification also seeks to 

explain the limited extent Standard 

Mail Fulfillment Parcels are either 

covered by the postal monopoly or 

within the scope of the exceptions or 

suspensions to the Private Express 

Statutes, noting that normally Standard 

Mail Fulfillment Parcels cannot contain 

items required to be sent by First–Class 

Mail. The Postal Service indicates an 

intention to promulgate mailing 

standards in its Domestic Mail Manual 

limiting the inclusion of letters in any 

Lightweight Parcel Select parcel unless 

covered by an exception or suspension 

to the Private Express Statues pursuant 

to 39 CFR parts 310 or 320. Id. at 7–9. 

Pursuant to 39 CFR 3032(f), the Postal 

Service states that the primary 

competitors to its Standard Mail 

Fulfillment Parcel services are the 

ground shipping services offered by 

UPS and FedEx and that each have the 

flexibility to price parcel products to 

maximize profitability. Id. at 9. The 

Postal Service states there is likely a 

distortionary effect on the marketplace 

because Standard Mail Fulfillment 

Parcels are priced below full cost 

coverage. Because of this market 

distortion, the ‘‘[Postal Service] has 

attempted to structure profitable 

contracts with large shippers for 

lightweight parcels but failed because 

its efforts were undercut by its own 

Standard Mail parcel prices.’’ Id. at 10. 

The Postal Service claims the transfer 

should ameliorate any distortionary 

effect on the current pricing structure. 

Id. The Postal Service states that it is 

also losing full network First–Class Mail 

package volume where its competitors 


jlentini on DSKJ8SOYB1PROD with NOTICES