my wifes employer is shopping around to outsource her department which has 6 employees can that fall under the warn act if there is not proper notice

Not all employers are covered under the WARN Act.  If the scope of the layoff is only 6 employees, then even if your employer is covered by the WARN Act, it is unlikely that it would be required to provide the 60 days notice.  The WARN Act does not prevent the outsourcing, it only requires 60 days notice.  Sounds like you're effectively on notice now and maybe shopping around for new employment is in order.