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In highly competitive, globalized economies and societies of always-on-line people intensively using the Internet and mobile phones, public administrations have to adapt to new challenges. Enterprises and citizens expect public administrations to be agile and pro-active to foster development. A way to achieve agility and pro-activity is application of a model of Collaborative Network Organizations in its two forms: Virtual Organizations (VO) and Virtual Organization Breeding Environments (VOBE). In the paper, advantages are shown of public administration playing a role of a Virtual Organization customer on the one hand, and a Virtual Organization member on the other hand. It is also shown how public administration playing a role of a Virtual Organization Breeding Environment may improve its agility and promote advanced technologies and management methods among local organizations. It is argued in the paper that public administration should provide a Virtual Organization Breeding Environment as a part of public services.