Common Contracts
1 similar null contracts
Negotiated Volume Discounts in a Regulated Post1October 3rd, 2007
In 2002, the US Postal Service (USPS) proposed to implement a ground- breaking deal with Capital One Services, Inc., then the largest user of First-Class Mail in the United States. This negotiated service agreement (NSA), as it was termed, represented a significant departure from the tariff rate structure that has historically been employed for domestic rates. For the first time, volume based discounts were offered to encourage growth in First Class marketing mail. The agreement consisted of two main features. The first feature was a cost-based proposal to provide Capital One with electronic notifications when its First-Class solicitations were found to be undeliverable, in lieu of physical return of such pieces.2 The second feature was a schedule of discounts designed as declining blocks, whereby Capital One would pay lower marginal rates as its First-Class volume achieved certain volume thresholds. The duration of the agreement was three years.
