Coffey reports seeing Goldblume at a meat market bar the night before, before he and Bates find two street cops shot in an abandoned building, one dead, the other critical. Furillo has to break the news to the dead man's widow, who turns on him in bitter rage. Meanwhile, Goldblume and Washington discover that the gun used to kill their fellow officer was stolen from police inventory.
Furillo traces the trail of the gun to another precinct, where the officer in charge of it gave it to his brother-in-law for Christmas, rather than impound it. The brother-in-law claims the gun was stolen, but he never reported it because he had it illegally, along with a sub-machine gun.
The trail leads them to a convict in prison, with whom they bargain for information on the killer. LaRue and Washington then get information from a William Harrison, which takes them to their suspect. They hide out until the guy gets home, and when told to freeze, he opens fire on them with a machine gun and is killed himself.
That night, after some hanky-panky, Davenport reveals that she carries a handgun as well, to a dismayed Furillo.