I would call this a practice of "Double Standards". When US actively advocates "Free Global Trade" and "Open Markets" then why such a measure is needed.
Several US companies benefit from working for Govts of other countries. It will hurt more to US economy if govts of other countries start slapping such restrictions on US companies.
Where are we going from here from "Open Markets" and "Free Global Trade" to old age "Closed Markets" and "Restricted Trade" or "Tariff based trade" or what ... ?
Anyway, the amount of outsourcing from US Govt is only 2% of total chunk, so I guess it would not matter much. Also, the Job aspirants in US might not see any significant improvement due to this bill.
This is just my own opinion, nothing professional or legal.