[Federal Register Volume 74, Number 90 (Tuesday, May 12, 2009)]
[Notices]
[Pages 22185-22186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-11060]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2009-29; Order No. 210]


Global Direct Contracts (MC2009-9) Agreement

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
request to add an additional Global Direct Contracts agreement to the 
Competitive Product List. This notice addresses procedural steps 
associated with this filing.

DATES: Comments are due May 13, 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 <a href="/cdn-cgi/l/email-protection#04777061746c616a2a776c65766269656a447476672a636b72"><span class="__cf_email__" data-cfemail="691a1d0c19010c07471a01081b0f04080729191b0a470e061f">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background

    On May 1, 2009, the Postal Service filed a notice announcing that 
it has entered into an additional Global Direct Contracts agreement.\1\ 
Global Direct Contracts provide a rate for mail acceptance within the 
United States, transportation to a receiving country of mail that bears 
the destination country's indicia and payment by the Postal Service of 
the appropriate settlement charges to the receiving country. The Postal 
Service believes the instant agreement is functionally equivalent to 
previously submitted Global Direct agreements, and supported by the 
Governors' Decision filed in Docket No. MC2008-7.\2\ The Postal Service 
contends that the instant agreement should be included within the 
Global Direct Contracts product.
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    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Direct Contracts Negotiated Service 
Agreement, May 1, 2009 (Notice).
    \2\ Notice at 1-2. See Docket No. MC2008-7, Request of the 
United States Postal Service To Add Global Plus 2 Negotiated Service 
Agreements to the Competitive Product List, and Notice of Filing 
(Under Seal) the Enabling Governors' Decision and Two Functionally 
Equivalent Agreements, August 8, 2008; Attachment A is a redacted 
version of Decision of the Governors of the United States Postal 
Service on the Establishment of Prices and Classifications for 
Global Direct, Global Bulk Economy, and Global Plus Contracts 
(Governors' Decision No. 08-10), July 16, 2008. The Postal Service 
also filed under seal an unredacted version of the Governors' 
Decision in that docket.
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    The instant agreement. The Postal Service filed the instant 
agreement pursuant to 39 CFR 3015.5. In addition, the Postal Service 
contends that the agreement is in accordance with PRC Order No. 153.\3\ 
It submitted the agreement and supporting material under seal, and 
attached a redacted copy of the certified statement required by 39 CFR 
3015.5(c)(2) to the Notice.
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    \3\ PRC Order No. 153, Order Concerning Global Direct Contracts 
Negotiated Service Agreements, December 19, 2008.
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    The Notice provides the Postal Service's rationale for concluding 
that the instant agreement is functionally equivalent to the agreements 
filed in Docket Nos. CP2009-10, CP2009-11 and CP2009-18. Id. at 2-6.
    The Postal Service states that the instant agreement fits within 
the Mail Classification Schedule language for Global Direct Contracts, 
and indicates that this agreement is set to expire 1 year after its 
effective date which the Postal Service states will be within 30 days 
of completion of all regulatory approvals.\4\
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    \4\ The Postal Service notes this agreement has the same one-
year duration as the previously approved Global Direct Contract 
agreements. Notice at 5.
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    The Postal Service asserts that ``[i]n almost all substantive 
respects'' the instant agreement ``resembles the contract in Docket No. 
CP2009-11[.]'' Id. at 4. It notes that the agreement contains a volume 
commitment, whereas the agreement in Docket No. CP2009-11 has a postage 
commitment. Notwithstanding any differences in prices, foreign services 
offered, foreign destinations, or volume or postage commitments, the 
Postal Service contends that the instant agreement is functionally 
equivalent to Global Direct agreements filed previously. Id. at 4-5. It 
characterizes other differences from previous Global Direct agreements 
as cosmetic or minor, having no effect on

[[Page 22186]]

the agreement's ``essential cost or market characteristics.'' Id. at 6.
    Lastly, the Postal Service notes that the agreement contains 
provisions that provide certain automatic price changes triggered by 
objective, external factors. It argues that ``[t]he formulaic, pre-
established nature of such changes essentially removes them from the 
area of Postal Service discretion.'' Id. at 5, n.8. Consequently, the 
Postal Service asserts that such changes do not represent price changes 
under 39 CFR 3015.5. Thus, in lieu of filing under rule 3015.5, it 
``proposes to file such changes with the Commission on a notice-type 
basis, without the expectation that the filings should lead to further 
proceedings or review.'' Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2009-29 for consideration 
of matters related to the agreement identified in the Postal Service's 
Notice.
    Interested persons may submit comments on whether the Postal 
Service's agreement is consistent with the policies of 39 U.S.C. 3632, 
3633, or 3642. Comments are due no later than May 13, 2009. The public 
portions of these filings 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 the captioned filings.
    It Is Ordered:
    1. The Commission establishes Docket No. CP2009-29 for 
consideration of the matters raised in this docket.
    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 these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than May 13, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-11060 Filed 5-11-09; 8:45 am]
BILLING CODE 7710-FW-P


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