diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index f643b86..612806d 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -348,8 +348,6 @@ jobs:
         id: docker_build
         uses: docker/build-push-action@v6
         with:
-          build-args: |
-            VERSION=${{ needs.prepare.outputs.source_version }}
           cache-from: type=local,src=${{ env.BUILDX_CACHE_DIR }}
           cache-to: type=local,dest=${{ env.BUILDX_CACHE_DIR }}
           context: .
@@ -516,8 +514,6 @@ jobs:
         id: docker_build
         uses: docker/build-push-action@v6
         with:
-          build-args: |
-            VERSION=${{ needs.prepare.outputs.source_version }}
           cache-from: type=local,src=${{ env.BUILDX_CACHE_DIR }}
           cache-to: type=local,dest=${{ env.BUILDX_CACHE_DIR }}
           context: .
diff --git a/Dockerfile b/Dockerfile
index fc7b5c2..ffcae61 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,8 +1,59 @@
-ARG VERSION=unspecified
+# Official Docker images are in the form library/<app> while non-official
+# images are in the form <user>/<app>.
+FROM docker.io/library/python:3.13.1-alpine3.20 AS compile-stage
 
-FROM python:3.12.0-alpine
+###
+# Unprivileged user variables
+###
+ARG CISA_USER="cisa"
+ENV CISA_HOME="/home/${CISA_USER}"
+ENV VIRTUAL_ENV="${CISA_HOME}/.venv"
 
-ARG VERSION
+# Versions of the Python packages installed directly
+ENV PYTHON_PIP_VERSION=24.3.1
+ENV PYTHON_PIPENV_VERSION=2024.4.0
+ENV PYTHON_SETUPTOOLS_VERSION=75.6.0
+ENV PYTHON_WHEEL_VERSION=0.45.1
+
+###
+# Install the specified versions of pip, setuptools, and wheel into the system
+# Python environment; install the specified version of pipenv into the system Python
+# environment; set up a Python virtual environment (venv); and install the specified
+# versions of pip, setuptools, and wheel into the venv.
+#
+# Note that we use the --no-cache-dir flag to avoid writing to a local
+# cache.  This results in a smaller final image, at the cost of
+# slightly longer install times.
+###
+RUN python3 -m pip install --no-cache-dir --upgrade \
+        pip==${PYTHON_PIP_VERSION} \
+        setuptools==${PYTHON_SETUPTOOLS_VERSION} \
+        wheel==${PYTHON_WHEEL_VERSION} \
+    && python3 -m pip install --no-cache-dir --upgrade \
+        pipenv==${PYTHON_PIPENV_VERSION} \
+    # Manually create the virtual environment
+    && python3 -m venv ${VIRTUAL_ENV} \
+    # Ensure the core Python packages are installed in the virtual environment
+    && ${VIRTUAL_ENV}/bin/python3 -m pip install --no-cache-dir --upgrade \
+        pip==${PYTHON_PIP_VERSION} \
+        setuptools==${PYTHON_SETUPTOOLS_VERSION} \
+        wheel==${PYTHON_WHEEL_VERSION}
+
+###
+# Check the Pipfile configuration and then install the Python dependencies into
+# the virtual environment.
+#
+# Note that pipenv will install into a virtual environment if the VIRTUAL_ENV
+# environment variable is set.
+###
+WORKDIR /tmp
+COPY src/Pipfile src/Pipfile.lock ./
+RUN pipenv check --verbose \
+    && pipenv install --clear --deploy --extra-pip-args "--no-cache-dir" --verbose
+
+# Official Docker images are in the form library/<app> while non-official
+# images are in the form <user>/<app>.
+FROM docker.io/library/python:3.13.1-alpine3.20 AS build-stage
 
 ###
 # For a list of pre-defined annotation keys and value types see:
@@ -27,15 +78,7 @@ ARG CISA_GID=${CISA_UID}
 ARG CISA_USER="cisa"
 ENV CISA_GROUP=${CISA_USER}
 ENV CISA_HOME="/home/${CISA_USER}"
-
-###
-# Upgrade the system
-#
-# Note that we use apk --no-cache to avoid writing to a local cache.
-# This results in a smaller final image, at the cost of slightly
-# longer install times.
-###
-RUN apk --update --no-cache --quiet upgrade
+ENV VIRTUAL_ENV="${CISA_HOME}/.venv"
 
 ###
 # Create unprivileged user
@@ -44,52 +87,25 @@ RUN addgroup --system --gid ${CISA_GID} ${CISA_GROUP} \
     && adduser --system --uid ${CISA_UID} --ingroup ${CISA_GROUP} ${CISA_USER}
 
 ###
-# Dependencies
+# Copy in the Python virtual environment created in compile-stage, symlink the
+# Python binary in the venv to the system-wide Python, and add the venv to the PATH.
 #
-# Note that we use apk --no-cache to avoid writing to a local cache.
-# This results in a smaller final image, at the cost of slightly
-# longer install times.
-###
-ENV DEPS \
-    ca-certificates \
-    openssl \
-    py-pip
-RUN apk --no-cache --quiet add ${DEPS}
-
-###
-# Make sure pip, setuptools, and wheel are the latest versions
-#
-# Note that we use pip3 --no-cache-dir to avoid writing to a local
-# cache.  This results in a smaller final image, at the cost of
-# slightly longer install times.
-###
-RUN pip3 install --no-cache-dir --upgrade \
-    pip \
-    setuptools \
-    wheel
-
-WORKDIR ${CISA_HOME}
-
-###
-# Install Python dependencies
-#
-# Note that we use pip3 --no-cache-dir to avoid writing to a local
-# cache.  This results in a smaller final image, at the cost of
-# slightly longer install times.
-###
-RUN wget --output-document sourcecode.tgz \
-    https://github.com/cisagov/skeleton-python-library/archive/v${VERSION}.tar.gz \
-    && tar --extract --gzip --file sourcecode.tgz --strip-components=1 \
-    && pip3 install --no-cache-dir --requirement requirements.txt \
-    && ln -snf /run/secrets/quote.txt src/example/data/secret.txt \
-    && rm sourcecode.tgz
+# Note that we symlink the Python binary in the venv to the system-wide Python so that
+# any calls to `python3` will use our virtual environment. We are using short flags
+# because the ln binary in Alpine Linux does not support long flags. The -f instructs
+# ln to remove the existing file and the -s instructs ln to create a symbolic link.
+###
+COPY --from=compile-stage --chown=${CISA_USER}:${CISA_GROUP} ${VIRTUAL_ENV} ${VIRTUAL_ENV}
+RUN ln -fs "$(command -v python3)" "${VIRTUAL_ENV}"/bin/python3
+ENV PATH="${VIRTUAL_ENV}/bin:$PATH"
 
 ###
 # Prepare to run
 ###
 ENV ECHO_MESSAGE="Hello World from Dockerfile"
+WORKDIR ${CISA_HOME}
 USER ${CISA_USER}:${CISA_GROUP}
 EXPOSE 8080/TCP
 VOLUME ["/var/log"]
 ENTRYPOINT ["example"]
-CMD ["--log-level", "DEBUG"]
+CMD ["--log-level", "DEBUG", "8", "2"]
diff --git a/README.md b/README.md
index 57f8c30..306552f 100644
--- a/README.md
+++ b/README.md
@@ -24,7 +24,7 @@ appropriate for Docker containers and the major languages that we use.
 To run the `cisagov/example` image via Docker:
 
 ```console
-docker run cisagov/example:0.0.1
+docker run cisagov/example:0.2.0
 ```
 
 ### Running with Docker Compose ###
@@ -37,7 +37,7 @@ docker run cisagov/example:0.0.1
 
     services:
       example:
-        image: cisagov/example:0.0.1
+        image: cisagov/example:0.2.0
         volumes:
           - type: bind
             source: <your_log_dir>
@@ -82,7 +82,7 @@ environment variables.  See the
 
     services:
       example:
-        image: cisagov/example:0.0.1
+        image: cisagov/example:0.2.0
         volumes:
           - type: bind
             source: <your_log_dir>
@@ -125,23 +125,52 @@ environment variables.  See the
 1. Pull the new image:
 
     ```console
-    docker pull cisagov/example:0.0.1
+    docker pull cisagov/example:0.2.0
     ```
 
 1. Recreate and run the container by following the [previous instructions](#running-with-docker).
 
+## Updating Python dependencies ##
+
+This image uses [Pipenv] to manage Python dependencies using a [Pipfile](https://github.com/pypa/pipfile).
+Both updating dependencies and changing the [Pipenv] configuration in `src/Pipfile`
+will result in a modified `src/Pipfile.lock` file that should be committed to the
+repository.
+
+> [!WARNING]
+> The `src/Pipfile.lock` as generated will fail `pre-commit` checks due to JSON formatting.
+
+### Updating dependencies ###
+
+If you want to update existing dependencies you would run the following command
+in the `src/` subdirectory:
+
+```console
+pipenv lock
+```
+
+### Modifying dependencies ###
+
+If you want to add or remove dependencies you would update the `src/Pipfile` file
+and then update dependencies as you would above.
+
+> [!NOTE]
+> You should only specify packages that are explicitly needed for your Docker
+> configuration. Allow [Pipenv] to manage the dependencies of the specified
+> packages.
+
 ## Image tags ##
 
 The images of this container are tagged with [semantic
 versions](https://semver.org) of the underlying example project that they
 containerize.  It is recommended that most users use a version tag (e.g.
-`:0.0.1`).
+`:0.2.0`).
 
 | Image:tag | Description |
 |-----------|-------------|
-|`cisagov/example:1.2.3`| An exact release version. |
-|`cisagov/example:1.2`| The most recent release matching the major and minor version numbers. |
-|`cisagov/example:1`| The most recent release matching the major version number. |
+|`cisagov/example:0.2.0`| An exact release version. |
+|`cisagov/example:0.2`| The most recent release matching the major and minor version numbers. |
+|`cisagov/example:0`| The most recent release matching the major version number. |
 |`cisagov/example:edge` | The most recent image built from a merge into the `develop` branch of this repository. |
 |`cisagov/example:nightly` | A nightly build of the `develop` branch of this repository. |
 |`cisagov/example:latest`| The most recent release image pushed to a container registry.  Pulling an image using the `:latest` tag [should be avoided.](https://vsupalov.com/docker-latest-tag/) |
@@ -196,8 +225,7 @@ Build the image locally using this git repository as the [build context](https:/
 
 ```console
 docker build \
-  --build-arg VERSION=0.0.1 \
-  --tag cisagov/example:0.0.1 \
+  --tag cisagov/example:0.2.0 \
   https://github.com/cisagov/example.git#develop
 ```
 
@@ -227,9 +255,8 @@ Docker:
     docker buildx build \
       --file Dockerfile-x \
       --platform linux/amd64 \
-      --build-arg VERSION=0.0.1 \
       --output type=docker \
-      --tag cisagov/example:0.0.1 .
+      --tag cisagov/example:0.2.0 .
     ```
 
 ## New repositories from a skeleton ##
@@ -256,3 +283,5 @@ dedication](https://creativecommons.org/publicdomain/zero/1.0/).
 All contributions to this project will be released under the CC0
 dedication. By submitting a pull request, you are agreeing to comply
 with this waiver of copyright interest.
+
+[Pipenv]: https://pypi.org/project/pipenv/
diff --git a/requirements-dev.txt b/requirements-dev.txt
index de5eb3b..d7a04ed 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -1,3 +1,4 @@
 --requirement requirements-test.txt
 ipython
+pipenv
 semver>=3
diff --git a/src/Pipfile b/src/Pipfile
new file mode 100644
index 0000000..fdd19e6
--- /dev/null
+++ b/src/Pipfile
@@ -0,0 +1,13 @@
+[[source]]
+url = "https://pypi.org/simple"
+verify_ssl = true
+name = "pypi"
+
+# List any Python dependencies for the image here
+[packages]
+# This should match the version of the image
+example = {file = "https://github.com/cisagov/skeleton-python-library/archive/v0.2.0.tar.gz"}
+
+# This version should match the version of Python in the image
+[requires]
+python_full_version = "3.13.1"
diff --git a/src/Pipfile.lock b/src/Pipfile.lock
new file mode 100644
index 0000000..408d508
--- /dev/null
+++ b/src/Pipfile.lock
@@ -0,0 +1,45 @@
+{
+  "_meta": {
+    "hash": {
+      "sha256": "8a376df6f25cf8583d5da89da420c5e51660f33a081c1f85236643ef31601833"
+    },
+    "pipfile-spec": 6,
+    "requires": {
+      "python_full_version": "3.13.1"
+    },
+    "sources": [
+      {
+        "name": "pypi",
+        "url": "https://pypi.org/simple",
+        "verify_ssl": true
+      }
+    ]
+  },
+  "default": {
+    "docopt": {
+      "hashes": [
+        "sha256:49b3a825280bd66b3aa83585ef59c4a8c82f2c8a522dbe754a8bc8d08c85c491"
+      ],
+      "version": "==0.6.2"
+    },
+    "example": {
+      "file": "https://github.com/cisagov/skeleton-python-library/archive/v0.2.0.tar.gz"
+    },
+    "schema": {
+      "hashes": [
+        "sha256:5d976a5b50f36e74e2157b47097b60002bd4d42e65425fcc9c9befadb4255dde",
+        "sha256:7da553abd2958a19dc2547c388cde53398b39196175a9be59ea1caf5ab0a1807"
+      ],
+      "version": "==0.7.7"
+    },
+    "setuptools": {
+      "hashes": [
+        "sha256:8199222558df7c86216af4f84c30e9b34a61d8ba19366cc914424cdbd28252f6",
+        "sha256:ce74b49e8f7110f9bf04883b730f4765b774ef3ef28f722cce7c273d253aaf7d"
+      ],
+      "markers": "python_version >= '3.9'",
+      "version": "==75.6.0"
+    }
+  },
+  "develop": {}
+}
diff --git a/src/version.txt b/src/version.txt
index 8acdd82..0ea3a94 100644
--- a/src/version.txt
+++ b/src/version.txt
@@ -1 +1 @@
-0.0.1
+0.2.0
diff --git a/tests/container_test.py b/tests/container_test.py
index cf18333..bddee4b 100644
--- a/tests/container_test.py
+++ b/tests/container_test.py
@@ -10,9 +10,8 @@
 ENV_VAR = "ECHO_MESSAGE"
 ENV_VAR_VAL = "Hello World from docker compose!"
 READY_MESSAGE = "This is a debug message"
-SECRET_QUOTE = (
-    "There are no secrets better kept than the secrets everybody guesses."  # nosec
-)
+DIVISION_MESSAGE = "8 / 2 == 4.000000"
+SECRET_QUOTE = "Three may keep a secret, if two of them are dead."  # nosec
 RELEASE_TAG = os.getenv("RELEASE_TAG")
 VERSION_FILE = "src/version.txt"
 
@@ -54,6 +53,7 @@ def test_output(dockerc, main_container):
     # make sure container exited if running test isolated
     dockerc.wait(main_container.id)
     log_output = main_container.logs()
+    assert DIVISION_MESSAGE in log_output, "Division message not found in log output."
     assert SECRET_QUOTE in log_output, "Secret not found in log output."