Yes, Hack the North is run at the University of Waterloo!

Mostly cost for us. JLCPCB's scale lets them make money on orders that would be too small for most fabs. Quoting, ordering, and part selection are all a battle tested web form. They also stock most of the parts in-house, so a small order costs them almost no engineering time. A local fab probably wouldn't have any of these advantages. JLCPCB really have it down to a science.