An “Offset” is defined as some means of asymmetrically compensating for a disadvantage, particularly as applied to military competition. The “Third Offset Strategy” is associated with the Defense Innovation Initiative announced by Secretary of Defense Chuck Hagel at the 2014 Reagan Defense Forum and the significance has grown over the past year with complex changes within select world regions. The presentation by LtGen Holmes will discuss the “Third Offset” as part of the changing strategic context and reemergence of world rivalries, a reduced technological advantage, and the rising acquisition cost. The presentation will include an explanation of how the U.S. Air Force will address new threats that arise from the third offset and how it differs from the past.