Just callin' it like it is

The private companies don't HAVE to do this. They could just lose all the contracts they have with the government. Good luck with that.

Smells like blackmail/extortion.

Nope. Standard boilerplate contractual stuff. You are allowed to be fussy over who you do business with. MOST companies don't get the kind of leverage to be successfully able to put that requirement into their contracts, but if you have a monopsony whereby people HAVE to do business with you if they want to stay in business at all, then you get to have quite a bit of say over what you expect from your partners.

Wal-Mart are able to do this, AND do. Amazon. Steam. And, of course, the government.

So what part of this won't be breach/breaking a contract without court approval?

Courts have ruled a long time ago that clauses like this are regular and square with the law

he doesnt want to mandate it...he wants business owners to do his dirty work...these politicians have no balls to do themselves..it will ruin their carreers and they know it..banking on fear for their businesses protection