[Federal Register Volume 74, Number 140 (Thursday, July 23, 2009)]
[Notices]
[Pages 36538-36539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17605]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2009-50; Order No. 251]


Global Expedited Package Services Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to include an additional Priority Mail Contract 1 on the 
Competitive Product List. This notice addresses procedural steps 
associated with this filing.

DATES: Comments are due July 27, 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#bccfc8d9ccd4d9d292cfd4ddcedad1ddd2fccccedf92dbd3ca"><span class="__cf_email__" data-cfemail="b7c4c3d2c7dfd2d999c4dfd6c5d1dad6d9f7c7c5d499d0d8c1">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Introduction
II. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    On July 16, 2009, the Postal Service filed a notice announcing that 
it has entered into an additional Global Expedited Package Services 1 
(GEPS 1) contract.\1\ GEPS 1 provides volume-based incentives for 
mailers that send large volumes of Express Mail International (EMI) 
and/or Priority Mail International (PMI). The Postal Service believes 
the instant contract is functionally equivalent to previously submitted 
GEPS 1 contracts, and is supported by the Governors' Decision filed in 
Docket No. CP2008-4.\2\ Notice at 1. It further notes that in Order No. 
86, which established GEPS 1 as a product, the Commission held that 
additional contracts may be included as part of the GEPS 1 product if 
they meet the requirements of 39 U.S.C. 3633, and if they are 
functionally equivalent to the initial GEPS 1 contract filed in Docket 
No. CP2008-5.\3\ Notice at 1.
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    \1\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Expedited Package Services 1 
Negotiated Service Agreement, July 16, 2009 (Notice).
    \2\ See Docket No. CP2008-4, Notice of United States Postal 
Service of Governors' Decision Establishing Prices and 
Classifications for Global Expedited Package Services Contents, May 
20, 2008. The docket referenced in the caption should be the docket 
in which the Governors' Decision is filed. In this instance, that 
was Docket No. CP2008-4. The contract being suspended was filed in 
Docket No. CP2008-5.
    \3\ See Docket No. CP2008-5, Order Concerning Global Expedited 
Package Services Contracts, June 27, 2008, at 7 (Order No. 86).
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    The instant contract. The Postal Service filed the instant contract 
pursuant to 39 CFR 3015.5. In addition, the Postal Service contends 
that the contract is in accordance with Order No. 86. The Postal 
Service states that the instant contract replaces the contract for the 
customer in Docket No. CP2008-5 which will end on August 1, 2009. Id. 
at 2. It submitted the contract and supporting material under seal, and 
attached a redacted copy of the contract and certified statement 
required by 39 CFR 3015.5(c)(2) to the Notice as Attachments 1 and 2, 
respectively. Id. at 1-2. The term of the instant contract is 1 year 
from the date the Postal Service notifies the customer that all 
necessary regulatory approvals have been received.
    The Notice advances reasons why the instant GEPS 1 contract fits 
within the Mail Classification Schedule language for GEPS 1. The Postal 
Service contends that the instant contract is functionally equivalent 
to the GEPS 1 contracts filed previously. It states that in Governors' 
Decision No. 08-7, a pricing formula and classification system were 
established to ensure that each contract meets the statutory and 
regulatory requirements of 39 U.S.C. 3633. The Postal Service contends 
that the instant contract demonstrates its functional equivalence with 
the previous GEPS 1 contracts because of several factors: The customers 
are small or medium-sized businesses that mail directly to foreign 
destinations using EMI and/or PMI, the contract term of one year 
applies to all GEPS 1 contracts, the contracts have similar cost and 
market characteristics, and each requires payment through permit 
imprint. Id. at 4. It asserts that even though prices may be different

[[Page 36539]]

based on volume or postage commitments made by the customers, or 
updated costing information, these differences do not affect the 
contracts' functional equivalency because the GEPS 1 contracts share 
similar cost attributes and methodology. Id. at 4-5.
    The Postal Service also states the instant contract has minor 
differences in terms compared to other GEPS 1 contracts based on the 
individual mailers. These distinctions include provisions clarifying 
the correlation between regulatory oversight and contract expiration 
\4\ and the availability of other Postal Service products and services; 
exclusion of certain flat rate products from the mail qualifying for 
discounts; a simpler mailing notice requirement along with provisions 
to meet scheduling needs; mail tender location changes; specific 
liquidated damages terms; provisions clarifying the mailer's volume and 
revenue commitment calculation in the event of early termination; and 
provisions clarifying aspects subject to regulatory oversight or 
revisions to update terms or references from a prior contract. Id. at 
5-6.
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    \4\ The Postal Service states that some of the contracts 
generally provide that if all applicable reviews have not been 
completed at the time an older contract expires, the mailer must pay 
published prices until some alternative becomes available. It seeks 
approval for the instant agreement prior to expiration of the 
current agreement.
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    The Postal Service states that these differences related to a 
particular mailer are ``incidental differences'' and do not change the 
conclusion that these agreements are functionally equivalent in all 
substantive aspects. Id. at 7.
    The Postal Service requests that this contract be included within 
the GEPS 1 product and be considered the baseline contract for 
determining functional equivalence for additional GEPS 1 contracts. Id.

II. Notice of Filing

    The Commission establishes Docket No. CP2009-50 for consideration 
of matters related to the contract identified in the Postal Service's 
Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632, 
3622 or 3642. Comments are due no later than July 27, 2009. 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 filings.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2009-50 for 
consideration of the issues raised in this docket.
    2. Comments by interested persons in these proceedings are due no 
later than July 27, 2009.
    3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-17605 Filed 7-22-09; 8:45 am]
BILLING CODE 7710-FW-P


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