Washington, DC – The Postal Regulatory Commission issued a notice today to clarify the outcome of a recent Market Dominant Negotiated Service Agreement (NSA) approved by the Commission. The Commission reaffirmed its commitment to timely review and approval of Market Dominant NSA applications that comply with the law and recognized the importance of innovation.
In its request, the Postal Service stated that it intended to begin implementing the agreement “in January 2024 or shortly thereafter.” The Commission approved the Market Dominant NSA on November 22, 2023, consistent with the Postal Service’s request. On January 17, 2024, the Postal Service informed the Commission that the mailer had decided not to implement the NSA.
Although the Commission approved the NSA on a schedule consistent with the Postal Service’s request, its recent notice blamed a supposed Commission delay for the failure to implement the NSA. The Postal Service made this claim even though it never informed the Commission the NSA needed to be approved earlier to allow for implementation.
NSAs are specialized contracts between the Postal Service and mailers. When Congress authorized the Postal Service to enter into Market Dominant NSAs, it required the Commission to find that an NSA would either improve the net financial position of the Postal Service or enhance its operational performance. The Commission uses accepted analytical principles to evaluate whether proposed NSAs comply with this law.
