On November 5, 2025, the United States Postal Service published a notice in the Federal Register announcing its filing of multiple requests with the Postal Regulatory Commission to incorporate new domestic shipping services contracts into the Mail Classification Schedule's Competitive Products List. This development involves 16 distinct negotiated service agreements for products such as Priority Mail Express, Priority Mail, and USPS Ground Advantage, filed between October 27 and October 30, 2025. These agreements represent customized arrangements typically offered to large-volume customers, allowing the USPS to provide tailored pricing and terms. The notice underscores the Postal Service's strategy to bolster its position in the competitive parcel market amid evolving e-commerce demands and competition from private carriers.
Background on Negotiated Service Agreements
Negotiated service agreements, or NSAs, are contracts between the USPS and individual customers that deviate from standard rates, often including volume-based discounts or specialized services. These agreements fall under the category of competitive products, which are services where the USPS competes directly with private entities like UPS and FedEx. The Postal Accountability and Enhancement Act of 2006 established the framework for such products, requiring that they cover their attributable costs and contribute to institutional costs without subsidization from market-dominant products like First-Class Mail.
The legal foundation for these filings stems from Title 39 of the United States Code, specifically sections 3642 and 3632(b)(3). Section 3642 allows for the addition or removal of products from the competitive list, while section 3632(b)(3) mandates that changes to the list be filed with the Postal Regulatory Commission (PRC) for review. In this case, the USPS is seeking to add these NSAs to the official roster, ensuring they comply with regulatory standards. Historical precedents, such as the PRC's approval of similar NSAs in docket years like 2024, demonstrate a pattern of incremental expansions to support USPS revenue growth.
Key players include the USPS, led by Postmaster General Louis DeJoy, who has emphasized competitive reforms, and the PRC, an independent agency responsible for overseeing postal rates and services. The PRC reviews these filings to ensure they do not result in undue discrimination or harm to competition.
Details of the Filed Agreements
The notice lists 16 agreements filed over four days in late October 2025, each assigned unique docket numbers for both Mail Classification (MC) and Contract (K) categories. For instance, on October 27, agreements such as PM-GA 895 (Dockets MC2026-56 and K2026-56) and PME-PM-GA 1448 (Dockets MC2026-57 and K2026-57) were submitted. Subsequent filings on October 28 included PM 942 (MC2026-58, K2026-58) and several PME-PM-GA combinations up to 1451. The pattern continued through October 30 with agreements like PM-GA 903 (MC2026-72, K2026-72).
These acronyms denote product combinations: 'PME' for Priority Mail Express, 'PM' for Priority Mail, and 'GA' for USPS Ground Advantage, a cost-effective ground shipping option introduced in 2023 to replace Parcel Select and Retail Ground. The numbering system, such as 'PM-GA 895,' indicates sequential identifiers for tracking purposes. While specific terms like discount rates or volume thresholds are not detailed in the Federal Register notice—consistent with confidentiality protections under 39 U.S.C. 3642—they are available for review on the PRC's website.
As stated in the notice, 'Documents are available at www.prc.gov,' allowing stakeholders to access redacted versions for transparency. Colleen Hibbert-Kapler, USPS Attorney for Ethics and Legal Compliance, signed the notice, highlighting the procedural adherence to federal requirements.
Regulatory and Political Context
The PRC's role is pivotal, as it must determine within a set period—typically 14 days for initial review—whether these agreements meet criteria for inclusion. This process involves assessing if the contracts are 'fair and reasonable' and do not confer undue preferences, as outlined in PRC regulations. Past decisions, such as the approval of NSA expansions in 2023 amid rising parcel volumes, illustrate how these agreements have helped USPS capture market share during e-commerce booms.
Politically, these filings occur against a backdrop of debates over USPS finances. Critics, including some congressional Republicans, argue that NSAs give the USPS an unfair edge due to its universal service obligation and lack of profit motive, potentially distorting the market. Conversely, supporters, often from Democratic-led committees like the House Oversight and Accountability Committee, view them as essential for sustainability, especially post the 2022 Postal Service Reform Act, which addressed pension and healthcare funding. The Biden administration has backed USPS modernization, though no direct executive involvement is noted here.
From a competitive standpoint, private carriers have occasionally challenged similar NSAs in PRC proceedings, claiming they undermine fair competition. Customers, particularly e-commerce giants, benefit from lower costs, fostering perspectives that these agreements drive efficiency and innovation in logistics.
Implications for the Postal Service and Stakeholders
In the short term, approval of these NSAs could immediately boost USPS revenue by securing commitments from high-volume shippers, aiding recovery from pandemic-era disruptions. Long-term, they signal a strategic pivot toward parcel services, which now comprise over half of USPS operating revenue, up from 30% a decade ago. This shift aligns with declining letter mail volumes and rising online shopping trends.
Potential challenges include regulatory scrutiny; if the PRC identifies issues, such as inadequate cost coverage, agreements could be rejected or modified. Broader implications involve antitrust concerns, though NSAs are designed to comply with federal antitrust exemptions for regulated industries. Different perspectives highlight a divide: consumer advocates praise potential cost savings passed to end-users, while small businesses worry about being outpriced by larger entities securing better deals.
The notice's timing, just before the holiday shipping peak, suggests an intent to capitalize on seasonal demand, potentially influencing 2025 fiscal outcomes.
In summary, these filings represent a routine yet significant step in USPS's competitive strategy, grounded in established legal frameworks. Looking ahead, the PRC's decisions could set precedents for future NSA expansions, while ongoing debates in Congress may shape broader postal policy. Stakeholders will monitor for appeals or amendments, as these agreements evolve amid technological and market changes.