E9-24002. New Postal Product

AGENCY:

Postal Regulatory Commission.

ACTION:

Notice.

SUMMARY:

The Postal Service recently filed a notice with the Commission announcing that it has entered into an additional Global Expedited Package Services Contract 2 contract. This document provides public notice of the Postal Service's filing and announces establishment of a formal docket to consider the Postal Service's action. It also invites public comment and addresses other procedural matters.

DATES:

Comments are due October 7, 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 or [e-mail].

SUPPLEMENTARY INFORMATION:

 

I. Introduction

II. Notice of Filing

III. Ordering Paragraphs

I. Introduction

On September 25, 2009, the Postal Service filed a notice announcing that it has entered into an additional Global Expedited Package Services 2 (GEPS 2) contract.^[1] GEPS 2 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 the previously submitted GEPS 2 contracts and is supported by the Governors' Decision filed in Docket No. CP2008-4.^[2] Id. at 1.

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. 290.^[3] The term of the instant contract is one year beginning October 1, 2009.^[4] Notice at 2.

In support of its Notice, the Postal Service filed four attachments as follows:

1. Attachment 1—an application for non-public treatment of materials to maintain the contract and supporting documents under seal;

2. Attachment 2—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 and certification of the formulas and certification of the Governors' vote;

3. Attachment 3—a redacted copy of the contract, applicable annexes, and a provision to modify the mailer's tender requirements; and

4. Attachment 4—a certified statement required by 39 CFR 3015.5(c)(2).

Functional equivalency. The Postal Service asserts that the instant contract is functionally equivalent to the contract in Docket No. CP2009-50 and prior GEPS 2 contracts. Id. at 3-4. It also contends that the instant contract meets the requirements of Governors' Decision No. 08-7 for rates for GEPS contracts. Id. at 3. The Postal Service states that the basic difference between the contract in Docket No. CP2009-50 and the instant contract is customer-specific information including the customer's name, address, representative to receive notices, identity of the signatory, and provisions clarifying tender locations, minimum revenue and/or volume requirements, and liquidated damages. Id. at 3-4. The Postal Service contends that the instant contract satisfies the pricing formula and classification system established in Governors' Decision No. 08-7. Id. at 3. It asserts that the instant contract and all GEPS 2 contracts have similar cost and market characteristics and is functionally equivalent in all relevant aspects. Id. at 4. The Postal Service concludes that this contract is in compliance with 39 U.S.C. 3633, and requests that this contract be included within the GEPS 2 product. Id.

II. Notice of Filing

The Commission establishes Docket No. CP2009-66 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, 3633 or 3642. Comments are due no later than October 7, 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 this proceeding.

III. Ordering Paragraphs

It is ordered:

1. The Commission establishes Docket No. CP2009-66 for consideration of the issues raised in this docket.

2. Comments by interested persons in these proceedings are due no later than October 7, 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 this proceeding.

4. The Secretary shall arrange for publication of this Order in the Federal Register.

Dated: September 30, 2009.

By the Commission.

Judith M. Grady,

Acting Secretary.

Footnotes

1.  Notice of United States Postal Service Filing of Functionally Equivalent Global Expedited Package Services 2 Negotiated Service Agreement and Application for Non-Public Treatment of Materials Filed Under Seal, September 25, 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 Contracts, May 20, 2008.

3.  See 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).

4.  See Docket Nos. CP2008-21 and CP2008-24, United States Postal Service Motion for Temporary Relief, September 25, 2009 (Motion). The Postal Service requests an extension of the expiration date for the original contract for this customer-based on extenuating circumstances. This motion was filed contemporaneously with the filing of this notice.