Policy Recommendation for Collaboration and TSA Privatization The objective of this study is to evaluate the benefits of collaboration between the federal government and non-profit organizations. The study cites different examples of collaborations across the world and their achievements. Moreover, the paper investigates whether it is beneficial to privatize the TSA (Transportation Security Administration) since the organization has performed below the international standards in the last few years. Finally, the study recommends the best policy option for the MRCC (Mt. Rossmoor Community College) in order to increase the number of students' enrollment and revenue in an academic year.

In the contemporary public administration environment, public organizations are currently entering the era of collaboration where various public sectors form an alliance to address issues and challenges that hinder them serving people better. Moreover, they are entering into the collaborative ventures to protect the U.S. national and foreign interests. The public sector collaboration is defined as a voluntary and reciprocal support and relationships between two or more public agencies or non-profit organizations with the intent to deliver the public goods. The collaboration of public administration is essential because the incremental improvement and innovation in public services positively affect millions of people. The ultimate goal of the collaboration is to enhance organization innovation. (Crow, 2015).

Collaboration can invigorate the public organizations by increasing innovation and assist in attracting highly skilled and qualified employees to the organizations. Kelly, & Schaefer, (2014) describe collaboration as an activity that involves different team members working to implement a program or project. However, a true collaboration is more than the activity, it involves a process of associated behaviors that can be developed and taught. This is a process that governs norms and behaviors that help to maximize individual contribution. The outcome of collaboration is a collective achievement that enhances innovation, foster the cross-functional activities, increases employee energy, productivity, and creativity. Moreover, a true collaboration improves organizational agility and flexibility, increase extreme high employee retention rates and enhance organizational competitive advantages. An effective collaboration can improve the performances and enhance the top-line revenue in the public sector. However, trust is the bedrock of an effective collaboration. In a collaborative environment, trust is a process whereby everyone is able to open express his or her opinion without fear of aggression or retaliation. When people are disrespected, they tend to look elsewhere where they feel they can contribute effectively. Moreover, effective communication is the foundation of collaboration because communication assists the stakeholders to outline the roadmap on the method to work collaboratively. (Hatch, 2012).

Based on the aforementioned benefits to be derived from collaboration, public sector organizations are required to build a network of relation to delivering quality public services and serve the citizens better. In essence, collaboration innovation is the key determinants for the public service improvement that involves multiple actors with the intent to pool knowledge, creativity, innovation, and resources together to deliver innovative service to the community. A key driver of collaboration and innovation in the public service is to deliver better services for people. The findings of the survey carried out by GovDelivery in 2012 show that 96% of the respondents believe a strong relationship between two or more government agencies is beneficial because it enables the agencies to deliver better services to the public, enhances better decision, and greater participation of the government process. For example, the advance in the information technology has made both businesses and private individuals to demand better services from the public services.

Goldsmith & Eggers (2004) believes that innovation and collaboration go hand-in-hand in modern day public administration. Typically, collaboration assists the public administrators to use innovative strategies to manage limited resources to launch effective changes. Thus, collaboration refers to the partnership relationships between two or more public agencies and other organizations with the intention to meet public goals. The essence of collaboration is to develop a network of connection among parties seeking connection to reach the organizational benchmark. In essence, this type of network and association is increasingly important among pubic agencies because it assists them providing essential services, which they will not be able to deliver if implemented the program alone. Thus, collaboration has become an important innovative strategic planning that provides opportunities for the public sector to meet important organizational goals.

Collaboration between Public Agencies and Non-Profit Organization

The government contract is very critical for "the provision of public services in the United States" (Witesman & Fernandez, 2012 p 690), and non-profit organizations have played an important role in the delivery of essential...

The interplay between nonprofits organizations and public organizations involves the financial dependency of non-profits on government funding in assisting the implementation of public programs. The principal-agent theory believes that for-profit organizations divert government resources to pursue their main interest, thus, public sectors can minimize the agent problems by selecting agents that have closely aligned related interests. (Fernandez, 2009). VanSlyke (2007) argues that non-profit organizations and pubic organizations have converging missions and interests based on their legal responsibilities and non-for-profit status to deliver common goods and services for public interests. The argument suggests that the non-profit providers will be a better partner of public sector than for-profit firms will because their performances are likely to be satisfactory to the government. Since the goal of non-profit organizations is to deliver the public goods without seeking for profits, this perception will give them more competitive advantages. (VanSlyke, 2007). From the agent's theory perspectives, the goal alignment between nonprofit organizations and public organizations makes the public managers trust the non-profits than for profits. (Bryce, 2005). Thus, the atmosphere of mutual trusts and shared interests will assist the public officials to reduce the transaction costs because they will implement less frequent monitoring and less rigorous screening of nonprofit contractors. In the atmosphere of a higher level of trusts, reduction of opportunism, and lower transaction costs, a collaboration between public organizations and non-profits organizations yield better results for delivering of public goods.
The agent theory argues that the major problems arise from the collaboration are the moral hazards and adverse selection. In the contractual relationships environment, the adverse selection arises when the principal enters into a collaboration with an agent without understanding the level of risks or costs involved. Thus, the agent is likely to misinterpret or withhold the information from the principal since the asymmetry information favors the agent. Thus, the government can minimize the effect of adverse selection through screening and collect the additional information about the agent. (Fernandez, 2009). Similarly, moral hazard is an opportunistic behavior that the agents employ to maximize their benefits. Thus, the agent seeks to promote their interest and maximize their profits at the expense of the principals. The agent problems arise when the principals and agents pursue a diverse goal; however, the goals and interests of public organizations and non-profit sectors are related because both organizations attempt to offer services to the community. Since the goal of for-profits organizations is to maximize their profits, a contracting collaboration between a for-profit organization and public organization may jeopardize the standard set by the government. While the for-profit organizations are to increase their market shares, and profits, however, non-profit organizations are to pursue communal interests bound by the legal constraints. Under the federal and state laws, non-profit organizations are to distribute their assets for the public purpose upon dissolution of their assets. (Witesman, & Fernandez, 2012).

The role of a non-profit organization for the provision of social services has grown significantly in the United States over the last three decades. Many non-profit organizations are able to deliver social services that neither for-profits organizations nor governments are able to match. (Salamon, 2003). Thus, a collaboration between the governments and non-profit organizations is an effective strategy to serve the client better, and the potential gains of collaboration include delivery of quality services, enhancing economic efficiency, the spread of risks as well as an increase of access to resources. (Gazley, Chang, & Bingham, 2006). A collaboration between the government and non-profit is an attractive option for the non-profit organizations and government to reduce their transaction costs that can be incurred from uncertainty in client needs, service demand, and funding. Moreover, the collaboration allows the non-profits and public sector to maximize their benefits since both organizations will share the risks associated with service delivery and production.

Despite the benefits associated with collaboration, its drawback is the costs of establishing an effective collaboration because both parties should draw an implementation plan to develop an effective partnership program. Moreover, loss of managerial autonomy, the opportunity costs associated with the resources, time devoted to the collaborative activities and difficulty in evaluating the results are other shortcomings of the collaboration. While the benefits derived from the collaborative ventures are collective among the collaborative parties, however, the costs may be difficult to measure.

Despite the shortcoming associated with the collaboration venture between the government and non-profit organization, however, collaboration is still an effective strategy to achieve the goals of the public organizations. Many public organizations seek a partnership with…