This bill restricts what weapons and ammunition the Department of Defense can buy and sell. Specifically, the military cannot sell military-grade assault weapons or large-caliber ammunition (.22 or larger) to commercial dealers. The military also cannot buy firearms or ammunition from any dealer or manufacturer that sells these weapons in the commercial marketplace unless they meet strict requirements.

Those requirements are pretty extensive. Dealers must be licensed, maintain electronic records of their inventory, limit ammunition sales to 500 rounds of large-caliber ammo per person per month, conduct background checks through the NICS system, implement security measures like cameras and alarms, and train employees to spot straw purchases and dangerous buyers. Dealers also can't sell firearms at gun shows unless background checks are required there, and they must refuse sales to people showing signs of intoxication, mental instability, or who pose a danger to themselves or others.

The bill creates a new licensing system for ammunition dealers similar to firearm dealer licenses, and requires the Attorney General to give ammunition dealers access to the NICS background check system within 180 days. Government-owned weapons factories that sell to the public must report annually to Congress about their commercial sales. The Department of Defense must also report annually on which manufacturers and dealers it buys from that also sell in the commercial market.