The Postal Regulatory Commission has initiated a public review process for a United States Postal Service request to introduce a new competitive product known as Mid-Market Non-Published Rates 3, or MMNPR-3. Filed on September 30, 2025, this proposal aims to expand the USPS's offerings for mid-size customers shipping packages via Priority Mail Express, Priority Mail, and USPS Ground Advantage. The action, detailed in Federal Register Volume 90, Number 197, published on October 15, 2025, opens a comment period ending October 14, 2025, and underscores ongoing efforts to enhance USPS competitiveness in the parcel delivery market through tailored pricing agreements. This development is significant as it leverages recent regulatory changes designed to streamline approvals for similar negotiated contracts, potentially allowing the USPS to respond more agilely to market demands while adhering to statutory requirements for cost coverage and fair competition.
Background on Competitive Postal Products and Negotiated Service Agreements
The USPS operates under a framework where its products are divided into market-dominant and competitive categories, as established by the Postal Accountability and Enhancement Act of 2006. Competitive products, such as parcel services, must cover their attributable costs and contribute to institutional costs without subsidization from market-dominant products, per 39 U.S.C. 3633. Negotiated service agreements, or NSAs, allow the USPS to offer customized pricing to specific customers, often at rates not publicly available, to compete with private carriers like UPS and FedEx.
Non-published rates products fall under this NSA umbrella, enabling confidential pricing terms that vary from standard rates. The MMNPR-3 proposal builds on prior iterations, including MMNPR and MMNPR-2, which were approved through streamlined processes. For instance, in Docket No. RM2023-5, the Commission adopted rules in Order No. 7353 on August 9, 2024, to facilitate quicker reviews of qualifying NSAs by establishing eligibility criteria, financial models, and minimum rates upfront. This approach avoids case-by-case scrutiny for each contract, provided they conform to approved templates.
The current request references a financial model and minimum rates approved in Order No. 8617 from Docket No. RM2025-5 on January 15, 2025, ensuring that MMNPR-3 contracts will not impair the USPS's financial integrity. By targeting mid-market customers—those with moderate shipping volumes—the product aims to fill a gap between large-volume enterprise agreements and standard retail rates.
Key Elements of the USPS Proposal
The USPS filing, submitted under Docket Nos. MC2025-1732 and K2025-1723, seeks to add MMNPR-3 to the Mail Classification Schedule's competitive product list. It includes a contract template that consolidates and updates elements from previous MMNPR-2 templates, as noted in the request. Core provisions cover applicability of future surcharges, time-limited price changes, appeals processes, confidentiality, contract durations of one to three years, mutual termination options with negotiable notice periods, and a stipulation that no packaging is provided.
A notable feature is the inclusion of three optional pricing mechanisms: tiered annual pricing, tiered previous quarter pricing, and tiered rolling quarter pricing. These allow pricing to adjust based on customer volume tiers over different time frames, providing flexibility without altering the underlying financial model. The USPS asserts that these options maintain compliance with 39 U.S.C. 3633, as they introduce no new costs, services, or customer requirements. Materials filed under seal, including the contract template, support this by demonstrating consistency with the pre-approved financial framework.
This structure reflects lessons from earlier dockets, such as the MMNPR-2 establishment in Docket No. K2025-1124, where similar templates were refined to balance customization with regulatory oversight.
Regulatory Process and Public Involvement
The Commission's notice establishes a formal proceeding, inviting electronic comments via its Filing Online system by October 14, 2025. For those unable to file electronically, alternatives are available by contacting General Counsel David A. Trissell. Christopher Mohr has been appointed as the Public Representative under 39 U.S.C. 505 to advocate for general public interests, independent of any specific stakeholders.
This process aligns with 39 CFR 3035.105(a), 3041.205, and 3041.320, which govern additions to the competitive product list and streamlined NSA reviews. By publishing in the Federal Register, the Commission ensures transparency, even for non-published rates, allowing input from competitors, customers, and advocacy groups. Past proceedings, like those in RM2023-5, have seen comments addressing concerns over market distortion or insufficient cost recovery, influencing final rules.
Perspectives and Implications
Stakeholders view NSAs like MMNPR-3 through varied lenses. From the USPS perspective, these agreements enhance revenue by attracting mid-market shippers who might otherwise turn to private competitors, supporting overall financial stability amid declining mail volumes. Industry groups, such as parcel shippers' associations, may welcome the flexibility for cost savings, potentially boosting e-commerce accessibility.
Critics, including competitors and consumer advocates, often highlight risks of anti-competitive practices or lack of transparency in non-published rates. For example, in prior dockets, concerns arose about whether such agreements unfairly disadvantage smaller shippers or fail to contribute adequately to institutional costs. The short-term implication could be faster USPS contract rollouts, with MMNPR-3 enabling quicker market entry post-approval. Longer-term, this might pressure the Commission to refine oversight, ensuring NSAs do not erode the USPS's universal service obligations.
Legally, the proposal draws on precedents like the Commission's approval of similar products, reinforcing that streamlined reviews comply with statutory mandates so long as financial safeguards are in place.
In summary, the USPS's push for MMNPR-3 represents a strategic expansion of competitive tools, grounded in established regulatory frameworks. Key takeaways include the product's focus on mid-market flexibility and adherence to pre-approved models. Looking ahead, the comment period may reveal debates on transparency and equity, potentially shaping the Commission's decision. Future challenges could involve adapting to evolving market dynamics, such as inflation or competition, while ongoing discussions might explore broader NSA reforms to balance innovation with accountability.