BEFORE THE POSTAL REGULATORY COMMISSION WASHINGTON, D.C. 20268-0001 COMPETITIVE PRODUCT PRICES PARCEL SELECT CONTRACT 9 (MC2015-44) NEGOTIATED SERVICE AGREEMENT

Docket No. CP2015-55

NOTICE OF UNITED STATES POSTAL SERVICE OF AMENDMENT TO PARCEL SELECT CONTRACT 9,

WITH PORTIONS FILED UNDER SEAL (May 31, 2017)

The Postal Service hereby provides notice that prices under Parcel Select

Contract 9, in the above-captioned proceeding, have changed as contemplated by the

contract’s terms. A redacted version of the amendment to Parcel Select Contract 9 is

provided in Attachment A, and the unredacted amendment is being filed under seal.

The amendment will become effective two business days following the day that the

Commission completes its review of this filing.

The supporting financial documentation and a certified statement, as required by

39 C.F.R. § 3015.5, are also included with this filing. The Postal Service’s original

application for non-public treatment in this docket is hereby incorporated by reference

for the protection of these materials.

Postal Regulatory CommissionSubmitted 5/31/2017 1:44:09 PMFiling ID: 100224Accepted 5/31/2017

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Respectfully submitted,

UNITED STATES POSTAL SERVICE By its attorneys:

John F. Rosato Acting Chief Counsel Pricing and Product Support Elizabeth A. Reed 475 L'Enfant Plaza West, S.W. Washington, D.C. 20260-1137 (202) 268-3179, Fax -6187 elizabeth.a.reed@usps.govU May 31, 2017

ATTACHMENT A

REDACTED AMENDMENT TO PARCEL SELECT CONTRACT 9

AMENDMENT2

OF SHIPPING SERVICES CONTRACT

BETWEEN

THE UNITED STATES POSTAL SERVICE

AND

REGARDING

PARCEL SELECT SERVICE

WHEREAS, the United States Postal Service ("the Postal Service") an ("Customer") entered into a Shipping Services Contract, PS

Contract 9, Docket No. CP2015-55, regarding Parcel Select Service on February 23, 2015.

WHEREAS, the Parties desire to amend the te1ms in Sections I.B, I.E., I.F and Table 2 of the Contract.

NOW, THEREFORE, the Parties agree that the contract is hereby amended as detailed below. The existing contract remains unchanged in all other respects. This amendment shall become effective two (2) business days following the day on which the Commission issues all necessary regulatory approval.

[Delete Section I.E.6 and replace Section LB in its entirety, Section I.E.3-5 including Table 2, and Section I.Fin its entirety, as follows.]

I. Terms

B. This Contract applies to Customer's Parcel Select ("PS") DDU pieces­and are not addressed to any ZIP

Code in Attachment A ("DDU pieces"), Customer's PS DSCF 3-Digit machinable pieces and are not addressed to any ZIP Code in Attachment A ("DSCF 3-Dig.

pieces"), Customer's PS DSCF 3-Digit machinable pieces -and are addressed to any ZIP Code

in Attachment A ("DSCF 3-Dig pieces"). All pieces eligible for Contract Pricing under this Contract shall collectively be known as "Contract Packages." The ZIP Codes contained in Attachment A to the Contract will remain in effect for the term of the Contract, unless mutually modified by the Pa1ties.

E. Pdce Calculation.

3. Beginning on the Effective Date of this amendment and until prices are updated at the close of the Contract Quarter ending June 30, 2017, pursuant to Section I.E.4 below, Customer shall receive Tier 3 prices for Contract Packages pmsuant to Table 2 below.

4. Subsequent Contract Prices: After June 30, 2017, Customer shall receive contract p1ices based on the tier strncture and the volume amounts as indicated in Table 2, based on the previous four Contract Qua1ters' Volume.

5. Changes to prices pursuant to Section I.E.4 and Table 2 above will be made effective within fifteen (15) days of the close of the preceding Contract Quarter.

Section I.E.6. (Deleted)

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F. Annual Price Adjustment. ~ ·~· ~

1. For subsequent Contract Year~~ lteginnfog on the first anniversary of the contract's effective date, Parcel Select DDU contract prices in Table~ will be the lesser of (a) the preceding Contract~ Yr's pr~s, p s }bi mostfe(tent (as of the anniversary date) avera~R.ug}_ish.e~ centag\ i . s '1 rices <ff general applicability, as calculated l:iy the Posta rvice foj Pare . ~ e e~ Non-

-eight, or (b) the preceding Contract f ea.1::.sitJi~~s/plus-

2. For subsequent ~on tract Years, beginning. on the ~1:st annive1.·sai!' of .the contract's effective date, Parcel Select D~,f> . ttf119tf~es 111Table2 will be the lesser of (a) the preceding Con\act 1~ · ·' 3"ricl~lp~~!1e most recent (as of the anniversary date) average published percentage i~crease in prices of general applicability, as calculated by the Postal Service for Parcel Select DSCF Non-Lightweight, or (b) the preceding Contract Year's prices, plus

3. If the Postal Service maintains or decreases published rates of general applicability for Parcel Select DDU Non-Lightweight and/or DSCF Non­Lightweight, there shall be no change to contract pricing for that Contract Year for the appropriate product.

4. In any Contract Year, if the average published percentage increase for DDU Non-Lightweight and/or DSCF Non-Lightweight is more than

the difference between the published percentage increase and shall be applied to the following Contract Y car's annual adjustment for

DDU and DSCF 3-Digit Contract Packages, respectively. In no event shall Contract Package prices increase more than from the prior Contract Year.

5. Contract prices for subsequent Contract Years will be calculated by the Postal Service and rounded up to the nearest whole cent (i.e., $0.014 becomes $0.02).

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IN WITNESS WHEREOF, the Parties hereto have caused this amendment to be duly executed as of the later date below:

UNITED S

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ATTACHMENT B

FINANCIAL CERTIFICATION

Attachment B

Certification of Prices for Amendment to Parcel Select Contract 9

I, Steven R. Phelps, Manager, Regulatory Reporting and Cost Analysis, Finance

Department, am familiar with the prices and terms for the amendment to Parcel Select

Contract 9. The amended prices and terms contained in this Contract were established

by the Decision of the Governors of the United States Postal Service on the

Establishment of Prices and Classifications for Domestic Competitive Agreements,

Inbound International Competitive Agreements, and Other Non-Published Competitive

Rates (Governors' Decision No. 11-6).

I hereby certify, based on in the financial analysis provided herewith, that the

amended prices are in compliance with 39 U.S.C § 3633 (a)(1), (2), and (3). They are

expected to cover attributable costs. There should therefore be no subsidization of

competitive products by market dominant products. The amended contract should not

impair the ability of competitive products on the whole to cover an appropriate share of

institutional costs.

Digitally signed by Steven Phelps ON: cn;Steven Phelps, o, ou.

Steven p he I p s emau=steven.r.phelps@usps.gov, c:US Date: 2017.05.30 16:50:00 .04·00·

Steven R. Phelps