Section 223.7201 - Policy(a) The requirements of DoD Manual 5100.76, Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives, shall be applied to contracts when-(1) AA&E will be provided to the contractor or subcontractor as Government-furnished property; or(2) The principal development, production, manufacture, or purchase of AA&E is for DoD use.(b) The requirements of DoD Manual 5100.76 need not be applied to contracts when-(1) The AA&E to be acquired under the contract is a commercial product within the meaning of FAR 2.101; or(2) The contract will be performed in a Government-owned contractor-operated ammunition production facility. However, if subcontracts issued under such a contract will meet the criteria of paragraph (a) of this section, the requirements of DoD Manual 5100.76 shall apply.61 FR 7743, Feb. 29, 1996, as amended at 88 FR 6583, Jan. 31, 2023; 88 FR 80466, Nov. 17, 2023