The Case for Unfair Competition
Captive operations like in-plants support their parent organizations’ missions, bringing better flexibility and control. For this reason, insists one university administrator, the competition should be unfair.
6. Economy. Many times SDAEs are the most economical way to meet the institution's needs. The market may not have a good representation of the needed product or service, and the best solution may be to set up an SDAE.
7. Budgetary/Financial Flexibility. Since SDAEs are part of the institution, the funds they generate through business with other departments (and with "the outside") offers the institutional leadership a heightened measure of budgetary and financial flexibility. Sitting on top of it all, the institution's leadership enjoys some, if not much, discretion about how the circulation of funds can be used and directed to best accomplish the institution's mission.
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