The article aims to examine theoretical and practical relationships between academic excellence and competitiveness in university education. The survey was conducted among university employees. Evaluation of each factor was carried out using the five-point Likert scale. The highest and statistically significant assessment was received for the following factors: the growth of graduates' salaries (4.08, 3.89, 4.16), the number of foreign students (4.01, 4.44, 4.56), the amount of extra-budgetary income of universities from various types of activities (4.12, 4.27, 4.56), and the number of publications in indexed databases (3.69, 4.63, 3.81). Several factors with the closest assessments among all the respondents were identified. Besides, very low estimates of the quality of state participation in maintaining competitiveness and academic excellence in universities were revealed. The paper unveiled how the general theoretical correlation of competitiveness and academic excellence is realized in the practice of educational systems' public administration. Furthermore, the study disclosed the indicators used to assess universities' activities in the context of competitiveness and academic excellence. The author believes that the use of competitiveness category in describing the purpose of the academic excellence program is justified. The study identified several significant factors in improving academic performance and competitiveness that affect the position of universities in Russia and developing countries in international rankings. The example of the Russian Academic Excellence Project demonstrated that the provision by the authorities of an artificial competitive advantage to specific universities negatively affects the level of competitiveness of other Russian universities.