Proposed Rule2024-29090
Streamlined Negotiated Service Agreement Review and New Postal Product
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 12, 2024
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a recent Postal Service filing requesting the Commission initiate a rulemaking to conduct advance review of a financial model, minimum rates, and Mail Classification Schedule changes to facilitate streamlined review of eligible negotiated service agreements, and a related request to add a new non-published rates negotiated service agreement product to the Competitive product list. This document invites public comment on the advance review portion of the Postal Service's filing and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 89 Issue 239 (Thursday, December 12, 2024)</title>
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[Federal Register Volume 89, Number 239 (Thursday, December 12, 2024)]
[Proposed Rules]
[Pages 100440-100442]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-29090]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3041
[Docket Nos. RM2025-5 and K2025-491; Order No. 8239]
Streamlined Negotiated Service Agreement Review and New Postal
Product
AGENCY: Postal Regulatory Commission.
ACTION: Notification of filing.
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SUMMARY: The Commission is acknowledging a recent Postal Service filing
requesting the Commission
[[Page 100441]]
initiate a rulemaking to conduct advance review of a financial model,
minimum rates, and Mail Classification Schedule changes to facilitate
streamlined review of eligible negotiated service agreements, and a
related request to add a new non-published rates negotiated service
agreement product to the Competitive product list. This document
invites public comment on the advance review portion of the Postal
Service's filing and takes other administrative steps.
DATES: Comments are due: December 12, 2024.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="https://www.prc.gov">https://www.prc.gov</a>. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Postal Service Request
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On November 22, 2024, the Postal Service filed a petition pursuant
to 39 CFR 3041.205.\1\ Rulemakings conducted under that section concern
advance review of proposed financial models, minimum rates, and Mail
Classification Schedule (MCS) changes to permit streamlined review of
non-published rates (NPR) products and standardized distinct products
(SDPs). 39 CFR 3041.205(a). Included with the Request, the Postal
Service proposed to add a new NPR NSA product to the Competitive
product list pursuant to 39 CFR 3041.320. See Request at 1.
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\1\ USPS Request to Establish New Mid-Market--Non-Published
Rates Product (MMNPR) and Notice of Filing Materials Under Seal,
November 22, 2024 (Request).
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II. Postal Service Request
Background. The Commission adopted rules for streamlined option
rulemakings in Docket No. RM2023-5 to ``address elements of 39 U.S.C.
3642 review and 39 U.S.C. 3633 pre-implementation review that are
broadly applicable to qualifying [negotiated service agreements (NSAs)]
and not particular to individual qualifying NSAs.'' \2\ Specifically,
such proceedings are used to establish eligibility criteria specifying
the ways in which qualifying NSAs will be permitted to vary from
existing offerings, to review a proposed financial model for qualifying
NSAs that accounts for the financial impact of any such variations, and
to establish minimum rates for qualifying NSAs. Order No. 7353 at 4.
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\2\ Docket No. RM2023-5, Final Order Amending Rules Regarding
Competitive Negotiated Service Agreements, August 9, 2024, at 4
(Order No. 7353).
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After a financial model, minimum rates, and MCS language are
approved in a streamlined option rulemaking, NPR NSA products and SDP
NSAs that conform to the approved MCS language, use the approved
financial model, and comply with the approved minimum rates can be
added to the Competitive product list. See 39 CFR 3041.320(c); 39 CFR
3041.325(c). Requests to add conforming NPR NSA products to the
Competitive product list are reviewed in public proceedings, and, if
approved, one or more included contracts using the same contract
template may be subsequently added to the product without requiring
further approval from the Commission. See 39 CFR 3041.320. Requests to
add conforming SDP NSAs to the Competitive product list are reviewed by
the Commission in summary proceedings. 39 CFR 3041.325(c).
Request. The Postal Service proposes MCS language, a financial
model, and minimum rates for ``Mid-Market--Non-Published Rates''
contracts. See Request at 1. The Postal Service states that such
contracts will provide discounted rates for ``existing end-to-end
competitive products, Priority Mail Express, Priority Mail, and USPS
Ground Advantage[supreg] on the same basis as, and without any material
changes made to, the publicly available versions of those products.''
Id. at 2.
The proposed financial model uses the ``archetype approach''
wherein cost coverage is demonstrated for the national volume
distribution and each of 10 distinct volume distributions (archetypes).
See id. at 3. When the archetype approach was first proposed, the
Postal Service stated that it would assign each customer to an
archetype based on a questionnaire.\3\ The Postal Service further
stated that, within each archetype, volume is distributed across cubic
tiers and flat rate products consistent with national distribution
data. See Order No. 7334 at 7 (citing Docket Nos. MC2024-384 and
CP2024-392, Response to CHIR No. 1, question 3). The Postal Service
explained that it would not use the archetype approach for customers
with unique circumstances or preferences that make the archetype
approach inappropriate.\4\
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\3\ See Docket Nos. MC2024-384 and CP2024-392, Order Adding
Priority Mail Express, Priority Mail & USPS Ground Advantage
Contract 123 to the Competitive Product List, August 5, 2024, at 7
(Order No. 7334) (citing Docket Nos. MC2024-384 and CP2024-392, USPS
Response to Chairman's Information Request No. 1, with Portions
Filed Under Seal, July 16, 2024, question 3 (Docket Nos. MC2024-384
and CP2024-392, Response to CHIR No. 1)).
\4\ See Order No. 7334 at 8 (citing Docket Nos. MC2024-384 and
CP2024-392, USPS Response to Chairman's Information Request No. 2,
with Portions Filed Under Seal, July 29, 2024, question 2).
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The proposed addition of a new NPR NSA product to the Competitive
product list includes contract templates based on numerous recent
Postal Service NSA filings. Request at 3. The proposed contract
templates differ primarily based on how volume is calculated for
purposes of the tiered pricing mechanism, with two templates apiece
that rely on annual, quarterly, and rolling four-quarter volume. See
id. at 4, 4 nn.11-12.
III. Notice and Comment
The Commission establishes Docket Nos. RM2025-5 and K2025-491 for
consideration of matters raised by the Request. More information on the
Request may be accessed via the Commission's website at <a href="http://www.prc.gov">http://www.prc.gov</a>. Interested persons may submit comments regarding the
proposed financial model, minimum rates, and MCS changes filed pursuant
to 39 CFR 3041.205 no later than December 12, 2024. Should the
Commission authorize the financial model, minimum rates, and MCS
language for use pursuant to 39 CFR 3041.205(f), the Commission will
separately request public comment regarding whether the Postal
Service's request to add the Mid-Market--Non-Published Rates product to
the Competitive product list conforms to the then-authorized version of
the financial model, minimum rates, and MCS language and otherwise
satisfies the requirements of 39 CFR 3041.320(g).
Pursuant to 39 U.S.C. 505, Christopher Mohr is designated as an
officer of the Commission (Public Representative) to represent the
interests of the general public in these proceedings.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. RM2025-5 and K2025-491
for consideration of the matters raised by the USPS Request to
Establish New Mid-Market--Non-Published Rates
[[Page 100442]]
Product (MMNPR) and Notice of Filing Materials Under Seal, filed
November 22, 2024.
2. Comments by interested persons concerning the financial model,
minimum rates, and Mail Classification Schedule changes proposed
pursuant to 39 CFR 3041.205 are due no later than December 12, 2024.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher
Mohr to serve as an officer of the Commission (Public Representative)
to represent the interests of the general public in these dockets.
4. The Secretary shall arrange for the publication of this Order in
the Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-29090 Filed 12-11-24; 8:45 am]
BILLING CODE 7710-FW-P
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