COMPARATIVE STUDIES ON DEFENSE BUDGET TRANSPARENCY OF THE PEOPLE’S REPUBLIC OF CHINA, THE RUSSIAN FEDERATION, AND THE UNITED STATES.

SEC. 1299H. COMPARATIVE STUDIES ON DEFENSE BUDGET TRANSPARENCY OF THE PEOPLE’S REPUBLIC OF CHINA, THE RUSSIAN FEDERATION, AND THE UNITED STATES. (a) Studies Required.— (1) Department of defense study.—Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall complete a comparative study on the defense budgets of the People’s Republic of China, the Russian Federation, and the United States. (2) Independent study.— (A) In general.—Not later than 90 days after the date of the enactment of this Act, the Secretary shall offer to enter into an agreement with an entity independent of the Department of Defense to conduct a comparative study on the defense budgets of the People’s Republic of China, the Russian Federation, and the United States, to be completed not later than 270 days after the date on which the offer to enter into the agreement is made. (B) Federally funded research and development center.—The entity described in subparagraph (A) shall be a federally funded research and development center. (3) Goal.—The goal of the studies required by paragraphs (1) and (2) shall be to develop a methodologically sound set of assumptions to underpin a comparison of the defense spending of the People’s Republic of China, the Russian Federation, and the United States. (b) Elements.— (1) In general.—Each study required by subsection (a) shall do the following: (A) Determine the amounts invested by each subject country across functional categories for spending, including— (i) defense-related research and development; (ii) weapons procurement from domestic and foreign sources; (iii) operations and maintenance; (iv) pay and benefits; and (v) military pensions. (B) Consider the effects of purchasing power parity and market exchange rates, particularly on nontraded goods. (C) Consider differences in the relative prices and quality of goods within each subject country. (D) Compare the quality of labor and benefits for the defense workforce of each subject country. (E) Account for discrepancies in the manner in which each subject country accounts for certain functional types of defense-related spending. (F) Explicitly estimate the magnitude of omitted spending from official defense budget information. (G) Describe direct, indirect, and burden-sharing contributions made by host countries to each subject country, including contributions for— (i) labor costs; (ii) military construction projects; (iii) labor, utilities, facilities, and costs omitted; (iv) costs associated with training and operations; and (v) any other purpose the Secretary considers appropriate. (H) Analyze the budget impact of geographical considerations and forward-deployed forces. (I) Exclude spending related to veterans’ benefits. (2) Additional element for independent study.—In addition to the elements described in paragraph (1), the independent study required by subsection (a)(2) shall analyze best practices for quantifying and evaluating the comparative military expenditures of each subject country for defense-related databases and research. (c) Considerations.—The studies required by subsection (a) may take into consideration the following: (1) The effects of state-owned enterprises on the defense expenditures of the People’s Republic of China and the Russian Federation. (2) The role of differing acquisition policies and structures with respect to the defense expenditures of each subject country. (3) Any other matter relevant to evaluating the resources dedicated to the defense spending or the various military-related outlays of the People’s Republic of China and the Russian Federation. (d) Reports.— (1) In general.—Not later than 60 days after the date on which each study required by subsection (a) is completed, the Secretary shall submit to the appropriate committees of Congress a report on the results of the applicable study, together with the views of the Secretary on such study. (2) Form.—Each report required by paragraph (1) shall be submitted in unclassified form, but may include a classified annex. (3) Appropriate committees of congress defined.—In this subsection, the term “appropriate committees of Congress” means— (A) the Committee on Appropriations, the Committee on Armed Services, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and (B) the Committee on Appropriations, the Committee on Armed Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives.