Policies and Procedures


9.26 Competition with Private Sector

Overview

It is the policy of the Board of Regents that the University shall not engage in competition with private enterprise unless the activity will assist in the education, research, extension, or service mission of the institutions. Although the university is granted specific exemptions under Iowa Code Section 23A.2 (l0)k and Board administrative rules (681-9.4), it is the desire of the university to minimize potential conflicts and competition with private sector businesses.

Policy Statement

All activities involving the sale of goods, services, or facility usage shall be in accordance with an authorization and statement of purpose approved by the Vice President for Administration and Finance. This approval will be given only after a review which demonstrates that one or more of the following conditions is met:

  1. The activity is deemed to be an integral part of the institution's educational, research, public service, or campus support functions, or other educational and support activities.

  2. The activity is needed to provide an integral good or service which is not reasonably available in the community, or the activity is needed to provide an integral good or service at time, price, location, or terms which are not reasonably available in the community.

  3. The activity is carried out for the primary benefit of the campus community and is incidental to the education, research, service, or extension missions of the university.

  4. The activity is carried out due to the importance of maintaining the quality of the institution.

Reviewing Activities

A review committee composed of a representative or designee selected by the President and two representatives selected by the Vice-President for Administration and Finance will be appointed and charged with the following:

  1. Review existing or proposed campus activities where goods, services, or facilities currently are being provided but also are available from the private sector to determine compliance with the statutes and Board administrative rules.

  2. Recommend to the Vice-President for Administration and Finance approval, changes, abandonment, or consolidation of existing or proposed activities.

  3. Review written appeals and recommend appropriate action.

  4. Periodically meet with representatives from the local community and/or private sector and theVice-President to discuss policy or specific problems associated with services or goods provided by the university.

Appeals

A private enterprise seeking to appeal an activity of the university shall submit a written request for review to the Vice-President for Administration and Finance, describing the activity and providing examples of alleged unfair or inappropriate competition. If the private enterprise is dissatisfied with the university's response it may submit a written request for assistance to the Executive Director of the Board of Regents.

Policy Review

This policy and its implementation should be reviewed after it has been operational for three years.