> Sometimes I even wonder if they consider it's cheating at all or if it's just cleverness and they should be rewarded for it.

There is a quote that comes from sports but I think is more apt for business, "If you're not cheating, you're not trying" and ties well with "It's easier to ask for forgiveness than permission". This is a competition so they cheated and lost, but their gains from the work itself will/should pay dividends in the real world.