2010-32220. New Postal Product

AGENCY:

Postal Regulatory Commission.

ACTION:

Notice.

SUMMARY:

The Commission is noticing a recently-filed Postal Service request to add Priority Mail Contract 30 to the competitive product list. This notice addresses procedural steps associated with this filing.

DATES:

Comments are due: December 29, 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 FOR FURTHER INFORMATION CONTACT by telephone for advice on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT:

Stephen L. Sharfman, General Counsel, [e-mail] 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 3020.30 et seq., the Postal Service filed a formal request and associated supporting information to add Priority Mail Contract 30 to the competitive product list.^[1] The Postal Service asserts that Priority Mail Contract 30 is a competitive product “not of general applicability” within the meaning of 39 U.S.C. 3632(b)(3). Id. at 1. The Postal Service states that prices and classification underlying this contract are supported by Governors' Decision No. 09-6 in Docket No. MC2009-25. Id. The Request has been assigned Docket No. MC2011-9.

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. It states the instant contract is the immediate successor to the Priority Mail Contract 1 contract in Docket Nos. MC2008-8 and CP2008-26. The current contract expires on December 31, 2010.^[2] The instant contract has been assigned Docket No. CP2011-44.

Request. In support of its Request, the Postal Service filed six attachments as follows:

• Attachment A—a redacted copy of Governors' Decision No. 09-6, originally filed in Docket No. MC2009-25, authorizing certain Priority Mail contracts;
• Attachment B—a redacted copy of the contract;
• Attachment C—a proposed change in the Mail Classification Schedule competitive product list;
• Attachment D—a Statement of Supporting Justification as required by 39 CFR 3020.32;
• Attachment E—a certification of compliance with 39 U.S.C. 3633(a); and
• Attachment F—an application for non-public treatment of materials to maintain redacted portions of the contract and supporting documents under seal.

In the Statement of Supporting Justification, Josen Punnoose, Manager, Shipping Support (A), Shipping Services, asserts that the service to be provided under the contract will cover its attributable costs, make a positive contribution to institutional costs, and increase contribution toward the requisite 5.5 percent of the Postal Service's total institutional costs. Id., Attachment D. Thus, Mr. Punnoose contends there will be no issue of subsidization of competitive products by market dominant products as a result of this contract. Id.

Related contract. A redacted version of the specific Priority Mail Contract 30 is included with the Request. The contract will become effective on the day that the Commission provides all necessary regulatory approvals. The contract states it “shall expire 3 years from the effective date, unless (1) terminated by either Party with 30 days notice to the other Party in writing * * * .” The Postal Service represents that the contract is consistent with 39 U.S.C. 3633(a). Id., Attachment D.

The Postal Service filed much of the supporting materials, including the specific Priority Mail Contract 30, under seal. It maintains that the contract and related financial information, including the customer's name and the accompanying analyses that provide prices, terms, conditions, cost data, and financial projections should remain under seal. Id., Attachment F. It also requests that the Commission order that the duration of such treatment of all customer-identifying information be extended indefinitely, instead of ending after 10 years. Id. at 7.

II. Notice of Filings

The Commission establishes Docket Nos. MC2011-9 and CP2011-44 for consideration of the Request pertaining to the proposed Priority Mail Contract 30 product and the related contract, respectively.

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 and 39 CFR part 3015 and 39 CFR 3020, subpart B. Comments are due no later than December 29, 2010. The public portions of these filings can be accessed via the Commission's Web site (http://www.prc.gov).

The Commission appoints Derrick D. Dennis to serve as Public Representative in these dockets.

III. Ordering Paragraphs

It is ordered:

1. The Commission establishes Docket Nos. MC2011-9 and CP2011-44 for consideration of the matters raised in each docket.

2. Pursuant to 39 U.S.C. 505, Derrick D. Dennis 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 December 29, 2010.

4. The current contract filed in Docket Nos. MC2008-8 and CP2008-26 for Priority Mail Contract 1 is authorized to continue in effect through January 31, 2011.

5. The Secretary shall arrange for publication of this order in the Federal Register.

By the Commission.

Shoshana M. Grove,

Secretary.

Footnotes

1.  Request of the United States Postal Service to Add Priority Mail Contract 30 to Competitve Product List and Notice of Filing (Under Seal) of Contract and Support Data, December 15, 2010 (Request)

2.  The contract for Priority Mail Contract 1 was originally set to expire on October 15, 2010. In order No. 560, the Commission granted the Postal Service's motion for temporary relief allowing the contract to remain in effect until November 30, 2010, based on the expectation that the Postal Service would file the successor contract promptly. See Docket Nos. MC2008-8 and CP2008-26, Motion of the United States Postal Service for Temporary Relief, October 14, 2010, at 1. Obn November 29, 2010, the Postal Service filed a motion requesting an additional extension for the contract for Priority Mail Contract 1. In Order No. 598, the Commission granted the Postal Service's motion for temporary relief allowing the contrat to remain in effect until December 31, 2010. By this order, the commission extends the effective date of the contract for Priority Mail Contract 1 until January 31, 2011.