OCONUS Software Development

From the VA Handbook 6500.6:

"d. Custom software development and outsourced operations must be located in the U.S. to the maximum extent practical. If such services are proposed to be performed abroad and are not disallowed by other VA policy or mandates, the contractor/subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor."

Does anyone know of any federal policies or VA policy/mandates that would prohibit software development OCONUS?

Thanks,

Prezmil2020