This bill aims to amend Title 10, United States Code, by imposing significant restrictions on the Department of Defense's (DoD) involvement with certain weapons and ammunition in the commercial market. Its core purpose is to prevent the sale of specific military-grade items to civilians and to ensure that any DoD engagement with commercial dealers adheres to strict safety and accountability standards. Specifically, the bill prohibits the DoD and government-owned plants from selling **military-grade assault weapons** and **covered ammunition** to commercial dealers, either directly or through contractors. It also bars the DoD from procuring items from any manufacturer or dealer that sells these prohibited weapons or ammunition in the commercial marketplace. A **military-grade assault weapon** is defined as a semi-automatic, gas-operated or recoil-operated firearm with a high-capacity feeding device, while **covered ammunition** includes calibers larger than .22, such as .223 Remington and 7.62 NATO. For all other firearms and ammunition, the bill establishes rigorous requirements that commercial dealers must meet to be eligible for sales to or procurement by the DoD. These requirements include obtaining appropriate federal licenses for both firearms and ammunition, and demonstrating a low rate of firearms traced to crimes, specifically not more than 24 firearms used in crimes traced back to the dealer within a three-year period. Dealers must also adhere to specific ammunition sales limits, such as not transferring more than 500 rounds of covered ammunition or 1,000 rounds of other ammunition to the same individual within a 30-day period. A mandatory code of conduct is imposed, requiring dealers to refuse transfers without NICS background check verification, implement robust security systems, and decline sales at marketplaces that do not mandate background checks for all firearm sellers. Furthermore, the code of conduct mandates refusal to sell to individuals exhibiting signs of intoxication, mental instability, or posing a danger to themselves or others. Dealers must maintain remotely searchable electronic records for firearms inventory and ammunition transactions, and ensure employees complete mandatory training on identifying straw purchasers, illegal intent, self-harm indicators, and theft prevention. The bill also requires annual reports from government-owned plants and the DoD detailing their commercial sales and procurement activities. To facilitate these changes, the Attorney General is directed to make licenses available for ammunition dealers, applying requirements similar to those for firearm dealers, and to authorize licensed ammunition dealers to access and use the NICS background check system. Dealers who violate these provisions face penalties, including exclusion from DoD sales or procurement, and the bill authorizes appropriations to upgrade and maintain the NICS system.