Global Expedited Package Services Contract

Federal Register: July 28, 2009 (Volume 74, Number 143)

Notices

Page 37254-37255

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr28jy09-70

POSTAL REGULATORY COMMISSION

Docket No. CP2009-52; Order No. 253

Global Expedited Package Services Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

SUMMARY: The Commission is noticing a recently-filed Postal Service request to add a Global Expedited Package Services 1 contract to the

Competitive Product List. This notice addresses procedural steps associated with these filings.

DATES: Comments are due July 31, 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 stephen.sharfman@prc.gov.

SUPPLEMENTARY INFORMATION:

1. Introduction

2. Notice of Filing

3. Ordering Paragraphs

1. Introduction

   On July 21, 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.

   \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.

   \3\ See Docket No. CP2008-5, Order Concerning Global Expedited

   Package Services Contracts, June 27, 2008, at 7 (Order No. 86).

   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. CP2008-13, which will end on August 31, 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 asserts 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 1 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 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 identifies several other contractual differences including provisions that clarify the availability of other

   Postal Service products and services, exclude certain flat rate products from the mail qualifying for discounts, simplify mailing notice requirements, modify mail tender locations, clarify the mailer's volume and revenue commitment in the event of early termination, and modify the original GEPS 1 agreement to reflect changes unrelated to the mailers or negotiations of either party's obligations under the agreement. Id. at 5-6.

   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 6.

   The Postal Service requests that this contract be included within the GEPS 1 product. Id. at 7.

   The Postal Service maintains that certain portions of the contract and certified statement required by 39 CFR 3015.5(c)(2), names of GEPS 1 customers, related financial information, portions of the certified statement which contain costs and pricing as well as the accompanying analyses that provide prices, terms, conditions, and financial projections should remain under seal. Id. at 3.

2. Notice of Filing

   The Commission establishes Docket No. CP2009-52 for consideration of

   Page 37255

   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 31, 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.

3. Ordering Paragraphs

   It is ordered: 1. The Commission establishes Docket No. CP2009-52 for consideration of the issues raised in this docket. 2. Comments by interested persons in these proceedings are due no later than July 31, 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. E9-17917 Filed 7-27-09; 8:45 am

   BILLING CODE 7710-FW-P