The United States Postal Service announced on November 5, 2025, in the Federal Register, its filing of multiple requests with the Postal Regulatory Commission to add domestic shipping services contracts to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List. This development involves 16 separate agreements for services such as Priority Mail Express, Priority Mail, and USPS Ground Advantage, submitted over four days from October 27 to October 30, 2025. It underscores the USPS's strategy to offer customized pricing to large-volume customers, enhancing its position in the competitive parcel delivery sector amid growing e-commerce demands. The Postal Regulatory Commission will review these filings to ensure they meet statutory requirements for cost coverage and fair competition.
Background on Negotiated Service Agreements
Negotiated Service Agreements, or NSAs, allow the USPS to enter into contracts with individual customers for discounted rates on competitive products, provided they generate sufficient volume or meet other criteria. These agreements are governed by Title 39 of the United States Code, particularly sections 3642 and 3632, which authorize the addition of such contracts to the Mail Classification Schedule. Competitive products include parcel services that face market competition from private carriers like UPS and FedEx, unlike monopoly-protected letter mail.
The framework for NSAs emerged from the Postal Accountability and Enhancement Act of 2006, which aimed to modernize the USPS by introducing market-driven pricing for non-monopoly services. This law requires that competitive products cover their attributable costs and contribute to institutional costs, preventing cross-subsidization from monopoly revenues. Historical precedents include numerous NSA approvals by the Postal Regulatory Commission, such as the 2013 agreement with a major online retailer that boosted USPS parcel volumes significantly. Key players include the USPS, which negotiates and files these agreements, and the Postal Regulatory Commission, an independent agency that oversees compliance.
Details of the Recent Filings
The Federal Register notice lists 16 specific filings, each identified by a product category and docket numbers. For instance, on October 27, 2025, the USPS filed for PM-GA 895 under MC2026-56 and PME-PM-GA 1448 under MC2026-57. Subsequent filings on October 28 included PM 942 (MC2026-58), PM-GA 896 (MC2026-59), and several PME-PM-GA agreements numbered 1449 to 1451. The pattern continued through October 30 with agreements like PM-GA 901 to 903 and PME-PM-GA 1452 and 1453.
These contracts focus on combinations of Priority Mail Express for expedited delivery, Priority Mail for standard parcels, and USPS Ground Advantage for economical ground shipping. While the exact terms, such as volume thresholds or discount rates, are not detailed in the notice, they are available for public review on the Postal Regulatory Commission's website. Colleen Hibbert-Kapler, an attorney in the USPS's Ethics and Legal Compliance office, signed the notice, highlighting the agency's adherence to transparency requirements under federal law.
Regulatory Process and Oversight
Upon filing, the Postal Regulatory Commission initiates a review process to determine if the agreements should be added to the competitive products list. This involves assessing whether each NSA covers its costs, avoids undue preference to specific customers, and maintains competitive fairness. The commission may solicit public comments or hold hearings if concerns arise, as seen in past cases like Docket No. CP2018-213, where a proposed NSA was modified to address competitor complaints about predatory pricing.
Political forces influencing this area include congressional oversight through committees like the House Oversight and Accountability Committee, which has scrutinized USPS finances amid debates over funding and modernization. Perspectives vary: supporters, including e-commerce associations, argue NSAs drive efficiency and revenue growth, while critics from private carriers contend they distort market competition. The USPS maintains that these agreements are essential for viability in a sector where it handled over 7 billion parcels in fiscal year 2023, according to its annual reports.
Potential Implications
In the short term, approval of these NSAs could enable the USPS to secure contracts with high-volume shippers, potentially increasing parcel revenue streams that accounted for 32% of total operating revenue in 2023. Long-term effects might include strengthened market share in e-commerce logistics, where USPS competes with private firms offering similar services. However, challenges persist, such as ongoing financial losses reported at $6.5 billion in fiscal year 2023, prompting calls for rate adjustments or operational reforms.
Different viewpoints highlight the balance: consumer advocates emphasize affordable shipping options, while industry groups like the Parcel Shippers Association support NSAs for fostering innovation. Opponents, including the Coalition for a 21st Century Postal Service, warn of risks to universal service obligations if competitive focus overshadows core duties.
Forward-Looking Considerations
This batch of filings represents a continuation of the USPS's adaptive strategies in a dynamic market. Potential next steps include the Postal Regulatory Commission's decisions, expected within 45 days of filing per regulatory guidelines, which could lead to approvals, rejections, or modifications. Ongoing debates may center on broader postal reform, such as proposals in Congress to expand competitive offerings or address pricing transparency. Future challenges involve navigating economic pressures like inflation and supply chain disruptions, while balancing stakeholder interests to ensure sustainable operations.