The Postal Regulatory Commission (PRC) announced on November 12, 2025, in the Federal Register, its notice of recent filings by the United States Postal Service (USPS) concerning negotiated service agreements for competitive postal products. This development involves three distinct requests: a modification and extension of an existing international contract, the addition of a new domestic contract to the competitive product list, and the introduction of a standardized fulfillment product. Published under Volume 90, Number 216, the notice invites public comments on two of the filings by November 17, 2025, while the third proceeds under a summary review process. This action underscores the PRC's role in ensuring that such agreements comply with federal statutes governing postal rates and competition, potentially influencing pricing strategies and service options for businesses and consumers reliant on USPS competitive offerings.
Background on Negotiated Service Agreements
Negotiated service agreements represent customized contracts between the USPS and specific customers, often involving volume-based discounts or tailored terms for competitive products like express and priority mail. These agreements fall under the Postal Accountability and Enhancement Act of 2006, which divides postal products into market-dominant and competitive categories. Competitive products, such as those addressed in this notice, must cover their attributable costs and not be subsidized by market-dominant products, as required by 39 U.S.C. 3633. The PRC reviews these filings to verify compliance with these standards, drawing on precedents like the Commission's Order No. 4679 from 2018, which established rules for handling non-public information in such proceedings.
The USPS submits these requests pursuant to 39 CFR parts 3035 and 3041, which outline procedures for adding or modifying products on the competitive list. Key players include the USPS, which initiates the filings, and the PRC, which conducts reviews and appoints public representatives to safeguard general interests. For instance, in the current notice, public representatives such as Katalin Clendenin and Jennaca Upperman have been designated for the public proceedings.
Details of the Public Proceedings
The notice identifies two filings for review in public proceedings, where the PRC solicits comments to assess consistency with title 39 policies.
First, Docket No. CP2024-13 involves a request for Modification Two to the Priority Mail Express International, Priority Mail International, and Commercial ePacket Contract 2. This includes an extension of the agreement. Accepted on November 6, 2025, under authorities like 39 CFR 3035.105 and 3041.505, the filing seeks to adjust terms of an existing negotiated service agreement. Such modifications often address evolving customer needs or market conditions, ensuring the contract remains viable. The PRC's review will evaluate whether the changes adhere to requirements in 39 U.S.C. 3632 and 3633, which mandate that rates be reasonable and cover costs.
Second, Docket Nos. MC2026-86 and K2026-86 pertain to adding Priority Mail Express, Priority Mail, and USPS Ground Advantage Contract 1457 to the competitive product list. Also accepted on November 6, 2025, citing 39 U.S.C. 3642 and related regulations, this request introduces a new negotiated agreement. USPS Ground Advantage, a rebranded service combining elements of previous ground shipping options, targets e-commerce and parcel delivery markets. The filing includes materials under seal, indicating sensitive pricing or contractual details protected under 39 CFR 3011.301.
Public comments on both are due by November 17, 2025, allowing stakeholders to weigh in on potential impacts, such as effects on competition with private carriers like FedEx or UPS.
The Summary Proceeding and Standardized Products
In contrast, Docket Nos. MC2026-87 and K2026-87 involve a summary proceeding for adding a new fulfillment standardized distinct product, specifically PM-GA Contract 912. Accepted on November 6, 2025, under 39 U.S.C. 3642 and 3633, this request bypasses public comment due to its standardized nature. Standardized distinct products, as defined in 39 CFR 3041.110(n), are variations of competitive products with pre-reviewed financial models and minimum rates, streamlining approval per 39 CFR 3041.325(c)(2).
This approach reflects efficiency in regulatory processes, building on precedents where the PRC has approved similar standardized agreements to facilitate quicker market entry. The PM-GA designation likely combines Priority Mail and Ground Advantage elements, aimed at fulfillment services for businesses handling high-volume shipments.
Legal and Political Context
These filings occur amid broader political forces shaping postal policy, including ongoing debates over USPS financial sustainability and competition in the parcel sector. The Postal Accountability and Enhancement Act provides the foundational legal framework, with the PRC acting as an independent regulator to prevent anti-competitive practices. Relevant precedents include the Commission's decisions in prior dockets, such as those approving similar international contract extensions, which emphasized cost coverage and market fairness.
Different perspectives emerge: proponents, including USPS officials, argue that negotiated agreements enhance competitiveness and revenue, as noted in past filings where such contracts have boosted volumes. Critics, often from private sector competitors, may contend that discounted rates undercut fair competition, though the notice itself does not detail opposition. The appointment of public representatives ensures neutral oversight, representing general public interests without favoring specific entities.
Short-term implications include potential adjustments to USPS service offerings, affecting businesses using these products for international or domestic shipping. Long-term, successful approvals could encourage more customized agreements, influencing postal market dynamics amid e-commerce growth.
In summary, the PRC's notice highlights routine yet significant regulatory steps in postal operations. Key takeaways include the structured review processes that balance innovation with compliance. Looking ahead, potential next steps involve the Commission's decisions following comment periods, which could approve, modify, or reject the filings. Ongoing debates may center on adapting postal regulations to digital commerce trends, with challenges like ensuring cost transparency and equitable competition persisting in future proceedings. Stakeholders should monitor PRC updates for resolutions that could shape postal policy trajectories.