This bill restricts what the Department of Defense can buy and sell when it comes to certain weapons and ammunition. Specifically, the military cannot sell military-grade assault weapons or large-caliber ammunition (.22 and larger) to commercial dealers, and it cannot buy from any firearms or ammunition dealer that sells these items commercially.

But there's more to it. The bill also sets strict requirements for any firearms or ammunition dealer that wants to do business with the military. These dealers must be licensed, maintain a clean record (no more than 24 firearms they sold can be traced back to crimes within 3 years), and follow a detailed code of conduct. This code includes things like completing background checks before every sale, installing security systems with cameras and alarms, limiting ammunition sales to 500 rounds of large-caliber or 1,000 rounds of other ammunition per person per month, and refusing to sell to people who appear intoxicated or unstable. Dealers must also keep detailed electronic records of their inventory and sales, complete mandatory training on spotting illegal purchases and dangerous buyers, and report inspection results to their suppliers.

The bill also creates a new licensing system for ammunition dealers (similar to firearms dealer licenses) and requires them to use the national background check system. Government-owned military ammunition and weapons plants that sell to the public must report annually to Congress about their commercial sales, customers, and plans to prevent illegal diversion of weapons. The Department of Defense must also report annually on which manufacturers and dealers it buys from that also sell commercially.