Internal Service Center Policy - Inappropriate Activities

A. Competition with private enterprise; unrelated business. Internal Service centers:

1. must avoid providing services/products that violate Arizona Board of Regents policy regarding competition with private enterprise. In particular, Chapter I, section 1-105 of the Board of Regents policy manual and the Listing of Goods, Services and Facilities by Standard Industrial Classification. [Note: Where appropriate, or when in doubt, Internal Service Centers should have outside party customers sign a statement that the particular services/products are not available from commercial sources.]. Questions concerning competition with private enterprise should be directed to the ASU Director of Purchasing.

AND

 
2. should avoid providing services/products that qualify as "unrelated business" under IRS Code Sections 511-513. Contact Financial Services (Comptroller) for assistance in determining what constitutes "unrelated business".

B. Harmful inefficiencies or internal competition. Internal Service centers should not provide services/products that:

1. Can be produced by another source (University or private enterprise) in a more economical, timely, or efficient manner, or

2. Will create harmful intra-University competition for scarce resources, or

3. Have low customer-demand and comparatively high operating costs.