Paige comes home and tells Briggs she's stalled on her case with the limp-dicked gangster. She's frustrated because Bobby won't talk business in front of a woman. Briggs offers to help. She thanks him and kisses him on the cheek. So maybe Briggs's ill-advised house romance was with Paige? Briggs knocks on Mike's door and tells him the bullet plan is a go.
So now Mike has to ask Jakes if he can borrow a whole ton of illegal bullets. Jakes is all, are you fucking nuts? Fortunately, he knuckles under when Mike agrees to do his chores for two weeks. He caved awfully easily considering the consequences he outlined to Mike if any of those bullets get loose. Briggs runs Mike through their plan: they're going to sell the bullets to one of Bello's minions, then arrest and flip him and use him against Bello. Mike is all tarted up in Marine fatigues, and he tries a cornpone Southern accent for a hot minute, until Briggs reminds him that this isn't community theater, and if his cover isn't natural, it'll get him killed. Mike drops the accent.
Johnny runs them through the setup -- they're wearing mics, but there's no way to get a visual on the meeting site, which means snipers can't cover them. So their phrase to tip off Johnny in case there's a problem is, "Oh shit." As in, "Oh shit, these guys we're selling illegal armor-piercing bullets to are about to use them on us."
Mike and Briggs show Eddie (Bello's man) the bullets, and Eddie and the other bad guys try out the cop killers against a couple of teddy bears wearing body armor. But their aim is off; Briggs tries to cover by saying it's just the big cartridges pulling the guns off target. Eddie asks if Briggs is impugning his aim. Briggs says he's not, but Mike interrupts that actually, he is.
Listening in, Johnny tells the backup team that Levi might have just blown everything and to get ready to go in and save his bacon. Briggs covers it well, but his reaction is pretty clearly like, WTF, man. But Mike just coolly takes the gun and demonstrates how to compensate for longer, heavier ammo by thoroughly aerating the teddy bears. Eddie is impressed, says he'll take this news to Bello. And Mike's prodigy undercover-fu saves the day again.
Beach bonfire time. Johnny regales the others with Mike's exploits in taking out the fearsome teddy bears. Briggs asks how Mike's session with the shrink went, and after Charlie's token protest about, you know, HIPAA and shit, Mike explains that it went fine but they want to see him weekly. Everyone toasts.