diff --git a/adk/pyproject.toml b/adk/pyproject.toml
index b42b50e11..88125a8ce 100644
--- a/adk/pyproject.toml
+++ b/adk/pyproject.toml
@@ -65,6 +65,7 @@ dependencies = [
 # agentex/lib/* uses `from typing import override` (3.12+) in 19 files.
 # The slim agentex-client keeps 3.11 support.
 requires-python = ">= 3.12,<4"
+
 classifiers = [
   "Typing :: Typed",
   "Intended Audience :: Developers",
@@ -76,6 +77,23 @@ classifiers = [
   "License :: OSI Approved :: Apache Software License",
 ]
 
+# No `obs` extra, deliberately — do not add one for sgp-obs.
+#
+# sgp-obs is not on public PyPI (it is served from Scale's curated CodeArtifact
+# mirror), and declaring it in [project.optional-dependencies] makes THIS repo's uv
+# workspace unresolvable: `uv sync` re-locks, locking must resolve every declared
+# optional dependency of every workspace member, and there is no way to exempt one.
+# Measured: `uv lock --check`, `uv sync --all-extras`, plain `uv sync` with no extras,
+# and `uv sync --all-extras --no-extra obs` all fail (`--no-extra` filters what is
+# installed, not what is resolved); `uv lock` has no `--no-extra`; and
+# `[tool.uv] override-dependencies` does not exempt it either. Only `--frozen` works,
+# which would leave nobody able to re-lock this repo again.
+#
+# So the dependency is the AGENT's to declare — `sgp-obs[genai-auto,http,otlp]`
+# against the mirror — and the SDK wires it when it is importable. See
+# agentex/lib/core/observability/sgp_obs_setup.py; nothing imports sgp_obs outside a
+# try, so a plain `pip install agentex-sdk` is unaffected either way.
+
 [project.urls]
 Homepage = "https://github.com/scaleapi/scale-agentex-python"
 Repository = "https://github.com/scaleapi/scale-agentex-python"
diff --git a/src/agentex/lib/cli/templates/PRIVATE_INDEX.md b/src/agentex/lib/cli/templates/PRIVATE_INDEX.md
new file mode 100644
index 000000000..922107f9e
--- /dev/null
+++ b/src/agentex/lib/cli/templates/PRIVATE_INDEX.md
@@ -0,0 +1,62 @@
+# The private package index in scaffold Dockerfiles
+
+Every scaffold Dockerfile mounts a build secret named `codeartifact-pip-conf`. It lets an agent
+install Scale-internal packages — `sgp-obs`, for instance — that are not on public PyPI, without the
+build holding any registry credential of its own. The control-plane broker mints a short-lived
+CodeArtifact token per build and injects it as that secret.
+
+- Design: [Private Package Access for Customer Agents (PRD)](https://app.notion.com/p/Private-Package-Access-for-Customer-Agents-PRD-3ad904d6e6cb802cb091df1c25e230bc)
+- Tracking: [SGPINF-1568](https://linear.app/scale-epd/issue/SGPINF-1568/provide-scale-internal-packages-to-agentex-agents-in-customer)
+
+## It is inert by default
+
+The mount is `required=false` and guarded by `[ -s ... ]`, so with no secret injected the build is
+byte-identical to one without any of this. That covers every local build, every CI build, and every
+agent that never opts in. An empty secret file is skipped too.
+
+## Opting in
+
+Add the index to the agent's `pyproject.toml`:
+
+```toml
+[[tool.uv.index]]
+name = "scale-pypi"
+url = "<the scale-customer-pypi URL>"
+default = true
+```
+
+The name must be exactly `scale-pypi`. uv applies `UV_INDEX_SCALE_PYPI_USERNAME` /
+`UV_INDEX_SCALE_PYPI_PASSWORD` to the index of that name, so renaming it makes the credentials
+silently stop applying. Setting `UV_INDEX_URL` instead does not authenticate a *named* index at
+all, and the resolve fails with a 401.
+
+## Three things that are easy to get wrong
+
+**The token arrives percent-encoded.** The buildspec URL-encodes it to embed it in the pip config's
+URL userinfo, so a token containing `+`, `/` or `=` arrives as `%2B`, `%2F`, `%3D`. The `uv sync`
+templates decode it before exporting it as a password. Passing it through still-encoded sends a
+different string and the resolve 401s.
+
+**The credential must not follow project-controlled configuration.** uv binds credentials by index
+*name*, and the name-to-URL mapping would otherwise come from the agent's own `pyproject.toml` — so a
+project that pointed `scale-pypi` at another host would receive the token. Verified against a local
+server: the rogue host receives `Authorization: Basic aws:<token>` and the real index is never
+contacted. The templates therefore export `UV_INDEX` to re-bind the name to the URL the *broker*
+supplied, which overrides whatever the project declared. With that in place the rogue host is never
+contacted. The pinned URL carries no userinfo; the token still travels only in
+`UV_INDEX_SCALE_PYPI_PASSWORD`.
+
+The case this defends is not a malicious agent author — they also write the Dockerfile and could read
+the mounted secret directly. It is a *contributed* change to a project file, where a one-line URL edit
+is far less conspicuous in review than an exfiltration command in a Dockerfile.
+
+**The two template variants work differently, deliberately.**
+
+| Template | Install step | How the credential is supplied |
+| --- | --- | --- |
+| `Dockerfile-uv.j2` | `uv sync` against the agent's `pyproject.toml` | Named index `scale-pypi`, pinned via `UV_INDEX`, token decoded into `UV_INDEX_SCALE_PYPI_PASSWORD` |
+| `Dockerfile.j2` | `uv pip install -r requirements.txt` | No pyproject is present, so there is no named index to bind to. The credentialed URL is used directly via `UV_DEFAULT_INDEX` |
+
+The `requirements.txt` variant does **not** decode the token, and that is the point: it stays inside
+the URL, already encoded for exactly that use. Decoding it there would corrupt it. It is also not
+exposed to the redirection problem above, because the URL comes wholly from the injected secret.
diff --git a/src/agentex/lib/cli/templates/default-claude-code/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default-claude-code/Dockerfile-uv.j2
index 93d0f82d1..8a22d0f89 100644
--- a/src/agentex/lib/cli/templates/default-claude-code/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default-claude-code/Dockerfile-uv.j2
@@ -34,7 +34,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -42,6 +55,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default-claude-code/Dockerfile.j2 b/src/agentex/lib/cli/templates/default-claude-code/Dockerfile.j2
index d714d96f9..3556f6dfd 100644
--- a/src/agentex/lib/cli/templates/default-claude-code/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default-claude-code/Dockerfile.j2
@@ -33,8 +33,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/default-codex/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default-codex/Dockerfile-uv.j2
index 02860b9b9..b3c03c988 100644
--- a/src/agentex/lib/cli/templates/default-codex/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default-codex/Dockerfile-uv.j2
@@ -34,7 +34,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -42,6 +55,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default-codex/Dockerfile.j2 b/src/agentex/lib/cli/templates/default-codex/Dockerfile.j2
index 1a8eb1484..c0b3fc385 100644
--- a/src/agentex/lib/cli/templates/default-codex/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default-codex/Dockerfile.j2
@@ -33,8 +33,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/default-langgraph/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default-langgraph/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/default-langgraph/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default-langgraph/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default-langgraph/Dockerfile.j2 b/src/agentex/lib/cli/templates/default-langgraph/Dockerfile.j2
index 0395caf74..7f148e274 100644
--- a/src/agentex/lib/cli/templates/default-langgraph/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default-langgraph/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile.j2 b/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile.j2
index 056d60b96..0a416aa38 100644
--- a/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default-openai-agents/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/default-openai-agents/project/acp.py.j2 b/src/agentex/lib/cli/templates/default-openai-agents/project/acp.py.j2
index 66ee31243..ad8b6e41d 100644
--- a/src/agentex/lib/cli/templates/default-openai-agents/project/acp.py.j2
+++ b/src/agentex/lib/cli/templates/default-openai-agents/project/acp.py.j2
@@ -20,7 +20,7 @@ from dotenv import load_dotenv
 
 load_dotenv()
 
-from agents import Agent, Runner, function_tool, set_tracing_disabled
+from agents import Agent, Runner, function_tool, set_trace_processors
 
 from agentex.lib import adk
 from agentex.lib.types.acp import SendEventParams, CancelTaskParams, CreateTaskParams
@@ -34,10 +34,17 @@ from agentex.lib.core.harness.emitter import UnifiedEmitter
 from agentex.lib.adk import OpenAITurn
 from agentex.lib.core.tracing.tracing_processor_manager import add_tracing_processor_config
 
-# Disable the openai-agents SDK's native tracer so it doesn't ship traces to
-# api.openai.com using OPENAI_API_KEY (which may be a LiteLLM proxy key).
-# SGP tracing below still runs via the Agentex tracing manager.
-set_tracing_disabled(True)
+# Drop the openai-agents SDK's own exporter, so it can't ship traces to
+# api.openai.com using OPENAI_API_KEY (which may be a gateway/proxy key and would 401).
+#
+# Clearing the processor list rather than disabling tracing outright: disabling stops
+# spans being produced AT ALL, which silently starves any processor added later —
+# including the sgp-obs bridge the SDK installs when observability is on, so a Runner
+# turn would contribute no model spans. Clearing instead removes the OpenAI exporter
+# (which otherwise stays registered and is merely never fed) while leaving the
+# machinery alive for the bridge to attach to.
+# Agentex/SGP tracing still runs via the tracing manager.
+set_trace_processors([])
 
 logger = make_logger(__name__)
 
diff --git a/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile.j2 b/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile.j2
index 0395caf74..7f148e274 100644
--- a/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default-pydantic-ai/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/default/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/default/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/default/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/default/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/default/Dockerfile.j2 b/src/agentex/lib/cli/templates/default/Dockerfile.j2
index 0395caf74..7f148e274 100644
--- a/src/agentex/lib/cli/templates/default/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/default/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile-uv.j2
index 93d0f82d1..8a22d0f89 100644
--- a/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile-uv.j2
@@ -34,7 +34,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -42,6 +55,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile.j2
index 6cdc70799..cd0338d18 100644
--- a/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-claude-code/Dockerfile.j2
@@ -33,8 +33,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-codex/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-codex/Dockerfile-uv.j2
index 02860b9b9..b3c03c988 100644
--- a/src/agentex/lib/cli/templates/sync-codex/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-codex/Dockerfile-uv.j2
@@ -34,7 +34,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -42,6 +55,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-codex/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-codex/Dockerfile.j2
index afa4470d9..79293756d 100644
--- a/src/agentex/lib/cli/templates/sync-codex/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-codex/Dockerfile.j2
@@ -33,8 +33,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile.j2
index 4d9f41d45..d0c204e47 100644
--- a/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-langgraph/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile.j2
index 4d9f41d45..d0c204e47 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/project/agent.py.j2 b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/project/agent.py.j2
index 07546bffb..315c5a6ae 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/project/agent.py.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents-local-sandbox/project/agent.py.j2
@@ -15,7 +15,7 @@ from __future__ import annotations
 
 from datetime import datetime
 
-from agents import Runner, set_tracing_disabled
+from agents import Runner, set_trace_processors
 from agents.sandbox import SandboxAgent, SandboxRunConfig
 from agents.run_config import RunConfig
 from agents.sandbox.sandboxes.unix_local import (
@@ -25,10 +25,17 @@ from agents.sandbox.sandboxes.unix_local import (
 
 from project.tools import get_capabilities
 
-# Disable the openai-agents SDK's native tracer so it doesn't ship traces to
-# api.openai.com using OPENAI_API_KEY (which may be a gateway/proxy key and would
-# 401). Agentex tracing still runs via the tracing manager configured in acp.py.
-set_tracing_disabled(True)
+# Drop the openai-agents SDK's own exporter, so it can't ship traces to
+# api.openai.com using OPENAI_API_KEY (which may be a gateway/proxy key and would 401).
+#
+# Clearing the processor list rather than disabling tracing outright: disabling stops
+# spans being produced AT ALL, which silently starves any processor added later —
+# including the sgp-obs bridge the SDK installs when observability is on, so a Runner
+# turn would contribute no model spans. Clearing instead removes the OpenAI exporter
+# (which otherwise stays registered and is merely never fed) while leaving the
+# machinery alive for the bridge to attach to.
+# Agentex/SGP tracing still runs via the tracing manager.
+set_trace_processors([])
 
 MODEL_NAME = "gpt-4o-mini"
 INSTRUCTIONS = """You are a local sandbox assistant.
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile.j2
index 4d9f41d45..d0c204e47 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync-openai-agents/project/acp.py.j2 b/src/agentex/lib/cli/templates/sync-openai-agents/project/acp.py.j2
index 41029f2ce..07849e81d 100644
--- a/src/agentex/lib/cli/templates/sync-openai-agents/project/acp.py.j2
+++ b/src/agentex/lib/cli/templates/sync-openai-agents/project/acp.py.j2
@@ -13,12 +13,19 @@ from agentex.types.task_message_update import TaskMessageUpdate, StreamTaskMessa
 from agentex.types.task_message_content import TaskMessageContent
 from agentex.types.text_content import TextContent
 from agentex.lib.utils.logging import make_logger
-from agents import Agent, Runner, RunConfig, function_tool, set_tracing_disabled
-
-# Disable the openai-agents SDK's native tracer so it doesn't ship traces to
-# api.openai.com using OPENAI_API_KEY (which may be a LiteLLM proxy key).
-# SGP tracing below still runs via the Agentex tracing manager.
-set_tracing_disabled(True)
+from agents import Agent, Runner, RunConfig, function_tool, set_trace_processors
+
+# Drop the openai-agents SDK's own exporter, so it can't ship traces to
+# api.openai.com using OPENAI_API_KEY (which may be a gateway/proxy key and would 401).
+#
+# Clearing the processor list rather than disabling tracing outright: disabling stops
+# spans being produced AT ALL, which silently starves any processor added later —
+# including the sgp-obs bridge the SDK installs when observability is on, so a Runner
+# turn would contribute no model spans. Clearing instead removes the OpenAI exporter
+# (which otherwise stays registered and is merely never fed) while leaving the
+# machinery alive for the bridge to attach to.
+# Agentex/SGP tracing still runs via the tracing manager.
+set_trace_processors([])
 
 
 logger = make_logger(__name__)
diff --git a/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile.j2
index 4d9f41d45..d0c204e47 100644
--- a/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync-pydantic-ai/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/sync/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/sync/Dockerfile-uv.j2
index dd3035f7b..9b4f8d25b 100644
--- a/src/agentex/lib/cli/templates/sync/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/sync/Dockerfile-uv.j2
@@ -30,7 +30,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -38,6 +51,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/sync/Dockerfile.j2 b/src/agentex/lib/cli/templates/sync/Dockerfile.j2
index 4d9f41d45..d0c204e47 100644
--- a/src/agentex/lib/cli/templates/sync/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/sync/Dockerfile.j2
@@ -29,8 +29,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile-uv.j2
index f8746c573..1665bceb1 100644
--- a/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile-uv.j2
@@ -42,7 +42,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -50,6 +63,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile.j2
index 225863607..1297b7bd7 100644
--- a/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal-claude-code/Dockerfile.j2
@@ -41,8 +41,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal-codex/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal-codex/Dockerfile-uv.j2
index 7e31387fa..41d83e31c 100644
--- a/src/agentex/lib/cli/templates/temporal-codex/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal-codex/Dockerfile-uv.j2
@@ -42,7 +42,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -50,6 +63,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal-codex/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal-codex/Dockerfile.j2
index 0ae4e2079..d77d8073f 100644
--- a/src/agentex/lib/cli/templates/temporal-codex/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal-codex/Dockerfile.j2
@@ -41,8 +41,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile-uv.j2
index 6746869df..56b4d949c 100644
--- a/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile-uv.j2
@@ -36,7 +36,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -44,6 +57,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile.j2
index ba47485a9..5bb133a22 100644
--- a/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal-langgraph/Dockerfile.j2
@@ -35,8 +35,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile-uv.j2
index 0d9801016..a674d7d35 100644
--- a/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile-uv.j2
@@ -36,7 +36,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -44,6 +57,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile.j2
index 4c1798c42..a9a63757d 100644
--- a/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal-openai-agents/Dockerfile.j2
@@ -35,8 +35,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal-openai-agents/project/workflow.py.j2 b/src/agentex/lib/cli/templates/temporal-openai-agents/project/workflow.py.j2
index af8b7a299..1b2ae547c 100644
--- a/src/agentex/lib/cli/templates/temporal-openai-agents/project/workflow.py.j2
+++ b/src/agentex/lib/cli/templates/temporal-openai-agents/project/workflow.py.j2
@@ -10,12 +10,19 @@ from agentex.lib.core.temporal.types.workflow import SignalName
 from agentex.lib.utils.logging import make_logger
 from agentex.types.text_content import TextContent
 from agentex.lib.environment_variables import EnvironmentVariables
-from agents import Agent, Runner, set_tracing_disabled
-
-# Disable the openai-agents SDK's native tracer so it doesn't ship traces to
-# api.openai.com using OPENAI_API_KEY (which may be a LiteLLM proxy key).
-# SGP tracing below still runs via the Agentex tracing manager.
-set_tracing_disabled(True)
+from agents import Agent, Runner, set_trace_processors
+
+# Drop the openai-agents SDK's own exporter, so it can't ship traces to
+# api.openai.com using OPENAI_API_KEY (which may be a gateway/proxy key and would 401).
+#
+# Clearing the processor list rather than disabling tracing outright: disabling stops
+# spans being produced AT ALL, which silently starves any processor added later —
+# including the sgp-obs bridge the SDK installs when observability is on, so a Runner
+# turn would contribute no model spans. Clearing instead removes the OpenAI exporter
+# (which otherwise stays registered and is merely never fed) while leaving the
+# machinery alive for the bridge to attach to.
+# Agentex/SGP tracing still runs via the tracing manager.
+set_trace_processors([])
 
 from agentex.lib.core.temporal.plugins.openai_agents.hooks.hooks import TemporalStreamingHooks
 from pydantic import BaseModel
diff --git a/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile-uv.j2
index 0d9801016..a674d7d35 100644
--- a/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile-uv.j2
@@ -36,7 +36,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -44,6 +57,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile.j2
index 4c1798c42..a9a63757d 100644
--- a/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal-pydantic-ai/Dockerfile.j2
@@ -35,8 +35,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/templates/temporal/Dockerfile-uv.j2 b/src/agentex/lib/cli/templates/temporal/Dockerfile-uv.j2
index 0d9801016..a674d7d35 100644
--- a/src/agentex/lib/cli/templates/temporal/Dockerfile-uv.j2
+++ b/src/agentex/lib/cli/templates/temporal/Dockerfile-uv.j2
@@ -36,7 +36,20 @@ WORKDIR /app/{{ project_path_from_build_root }}
 COPY {{ project_path_from_build_root }}/pyproject.toml ./
 
 # Install dependencies (without project itself, for layer caching)
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present, so local
+# builds, CI builds, and agents that never opt in are unaffected.
+#
+# To opt in, and for why UV_INDEX is pinned to the broker's URL rather than trusting
+# the project's, see PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-install-project --no-dev
 
 # Copy the project code
@@ -44,6 +57,13 @@ COPY {{ project_path_from_build_root }}/project ./project
 
 # Install the project
 RUN --mount=type=cache,target=/root/.cache/uv \
+    --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_INDEX="scale-pypi=$(sed -n 's#.*index-url = https://aws:[^@]*@\(.*\)#https://\1#p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+      export UV_INDEX_SCALE_PYPI_USERNAME=aws; \
+      export UV_INDEX_SCALE_PYPI_PASSWORD="$(sed -n 's#.*index-url = https://aws:\([^@]*\)@.*#\1#p' /run/secrets/codeartifact-pip-conf \
+        | python3 -c 'import sys,urllib.parse;print(urllib.parse.unquote(sys.stdin.read().strip()))')"; \
+    fi; \
     uv sync --no-dev
 
 ENV PATH="/app/{{ project_path_from_build_root }}/.venv/bin:$PATH"
diff --git a/src/agentex/lib/cli/templates/temporal/Dockerfile.j2 b/src/agentex/lib/cli/templates/temporal/Dockerfile.j2
index 4c1798c42..a9a63757d 100644
--- a/src/agentex/lib/cli/templates/temporal/Dockerfile.j2
+++ b/src/agentex/lib/cli/templates/temporal/Dockerfile.j2
@@ -35,8 +35,19 @@ COPY {{ project_path_from_build_root }}/requirements.txt /app/{{ project_path_fr
 
 WORKDIR /app/{{ project_path_from_build_root }}
 
+# Optional private index for Scale-internal packages such as sgp-obs, injected by the
+# control-plane broker (SGPINF-1568). Inert unless the secret is present.
+#
+# This variant installs from requirements.txt, so there is no pyproject.toml for uv to
+# read a named index out of; the credentialed URL is used directly and is deliberately
+# NOT decoded. See PRIVATE_INDEX.md in the agentex-sdk CLI templates directory.
+#
 # Install the required Python packages
-RUN uv pip install --system -r requirements.txt
+RUN --mount=type=secret,id=codeartifact-pip-conf,required=false \
+    if [ -s /run/secrets/codeartifact-pip-conf ]; then \
+      export UV_DEFAULT_INDEX="$(sed -n 's#^[[:space:]]*index-url[[:space:]]*=[[:space:]]*##p' /run/secrets/codeartifact-pip-conf | head -1)"; \
+    fi; \
+    uv pip install --system -r requirements.txt
 
 # Copy the project code
 COPY {{ project_path_from_build_root }}/project /app/{{ project_path_from_build_root }}/project
diff --git a/src/agentex/lib/cli/tests/__init__.py b/src/agentex/lib/cli/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/src/agentex/lib/cli/tests/test_template_tracing.py b/src/agentex/lib/cli/tests/test_template_tracing.py
new file mode 100644
index 000000000..adb76fd08
--- /dev/null
+++ b/src/agentex/lib/cli/tests/test_template_tracing.py
@@ -0,0 +1,57 @@
+"""The openai-agents scaffolds must not disable tracing outright.
+
+`set_tracing_disabled(True)` stops openai-agents producing spans AT ALL, which
+silently starves any processor registered later — including the sgp-obs bridge the SDK
+installs when observability is on. The bridge still reports itself installed, so a
+Runner turn contributes no model spans and nothing says why.
+
+Measured against a spy processor:
+
+    set_tracing_disabled(True)  -> processors ['BatchTraceProcessor', 'Spy'], spy saw 0
+    set_trace_processors([])    -> processors ['Spy'],                        spy saw 1
+
+Note the first row: disabling tracing leaves the OpenAI exporter REGISTERED, merely
+never fed. Clearing the list actually removes it, so the replacement is strictly better
+at the thing the original was trying to do — keep traces away from api.openai.com.
+"""
+
+from __future__ import annotations
+
+from pathlib import Path
+
+import pytest
+
+TEMPLATES = Path(__file__).resolve().parents[1] / "templates"
+
+
+def _templates_using_agents_tracing() -> list[Path]:
+    return sorted(
+        p for p in TEMPLATES.rglob("*.j2") if "set_trace_processors" in p.read_text()
+    )
+
+
+def test_some_templates_were_found():
+    """Guards the glob itself: if the templates move, the assertions below would
+    vacuously pass on an empty list."""
+    assert _templates_using_agents_tracing(), f"no templates found under {TEMPLATES}"
+
+
+@pytest.mark.parametrize(
+    "template", _templates_using_agents_tracing(), ids=lambda p: p.parent.parent.name
+)
+class TestOpenAIAgentsScaffolds:
+    def test_does_not_disable_tracing(self, template: Path):
+        text = template.read_text()
+        assert "set_tracing_disabled(" not in text, (
+            f"{template} disables openai-agents tracing, which starves the sgp-obs bridge"
+        )
+
+    def test_clears_the_processor_list_instead(self, template: Path):
+        assert "set_trace_processors([])" in template.read_text()
+
+    def test_imports_what_it_calls(self, template: Path):
+        text = template.read_text()
+        assert "set_trace_processors" in text.split("\n\n")[0] or any(
+            "import" in line and "set_trace_processors" in line
+            for line in text.splitlines()
+        ), f"{template} calls set_trace_processors without importing it"
diff --git a/src/agentex/lib/core/adapters/llm/_genai_metrics.py b/src/agentex/lib/core/adapters/llm/_genai_metrics.py
new file mode 100644
index 000000000..3c2293cd6
--- /dev/null
+++ b/src/agentex/lib/core/adapters/llm/_genai_metrics.py
@@ -0,0 +1,133 @@
+"""GenAI metrics for the litellm gateway, via ``sgp_obs.metrics.genai.call()``.
+
+Why the SDK does this rather than leaving it to zero-code instrumentation:
+
+Most model calls in the fleet reach the wire through the ``openai`` client, and for
+those, patching that one client covers everything with no code — ``Runner.run``, the
+ADK's openai provider, and litellm pointed at an OpenAI-compatible proxy. The client
+patch cannot help in two situations, and this gateway hits both:
+
+1. **litellm routing natively** to Anthropic, Bedrock, Vertex or Azure never touches
+   the ``openai`` client, so nothing records it at all.
+2. Even in proxy mode, the patch sits *inside* the OpenAI client, so it reports
+   ``gen_ai.provider.name="openai"`` — the protocol. It cannot know that the caller
+   asked for ``claude-sonnet-4``. This gateway chose the vendor, so it can say so.
+
+``transport=`` resolves the overlap between the two: when the call is going out over
+the OpenAI client, we name that, and ``call()`` stands down if the client instrumentor
+is already recording. When litellm routes natively there is no such overlap, so we
+record. That decision is made per call, from the model string, in
+:func:`_split_model`.
+
+Everything here is fail-open: sgp-obs is an optional dependency and a telemetry problem
+must never fail a model call. If the import fails, :func:`inference_call` returns an
+object that records nothing and costs nothing.
+"""
+
+from __future__ import annotations
+
+from typing import Any
+
+from agentex.lib.utils.logging import make_logger
+
+logger = make_logger(__name__)
+
+# litellm's directive for "send this to the configured OpenAI-compatible proxy". It is
+# a routing instruction, not a vendor, so it is stripped before reading the vendor.
+_PROXY_PREFIX = "litellm_proxy/"
+
+# A bare model name with no "<vendor>/" prefix is OpenAI, per litellm's own default.
+_DEFAULT_VENDOR = "openai"
+
+_warned = False
+
+
+def _split_model(model: str) -> tuple[str, bool]:
+    """``(vendor, goes_out_over_the_openai_client)`` for a litellm model string.
+
+    ``"litellm_proxy/anthropic/claude-sonnet-4"`` -> ``("anthropic", True)``
+    ``"anthropic/claude-sonnet-4"``              -> ``("anthropic", False)``
+    ``"gpt-4o"``                                 -> ``("openai", True)``
+
+    A bare name is OpenAI, and litellm reaches OpenAI through the ``openai``
+    client, so the client instrumentor already sees it and we stand down.
+    """
+    proxied = model.startswith(_PROXY_PREFIX)
+    rest = model[len(_PROXY_PREFIX):] if proxied else model
+    vendor = rest.split("/", 1)[0] if "/" in rest else _DEFAULT_VENDOR
+    # Proxy mode always leaves over the OpenAI client. So does a native openai/* call.
+    return (vendor or _DEFAULT_VENDOR), proxied or vendor == _DEFAULT_VENDOR
+
+
+def resolve_model(args: tuple[Any, ...], kwargs: dict[str, Any]) -> str:
+    """The model for a litellm call, whether it arrived by keyword or positionally.
+
+    ``litellm.acompletion`` takes ``model`` as its FIRST positional argument, and the
+    gateway forwards ``*args`` untouched, so ``gateway.acompletion("anthropic/claude-
+    sonnet-4", messages)`` is a legal call that puts the model in ``args[0]``.
+
+    Reading only ``kwargs`` there does not merely mislabel the vendor, it loses the
+    measurement: an empty model resolves to the default vendor "openai", which sets
+    ``transport=OPENAI``, which makes ``call()`` stand down for the OpenAI client
+    instrumentor — while litellm routes natively to Anthropic and never touches that
+    client. Nothing records it and nothing says so.
+    """
+    model = kwargs.get("model")
+    if not model and args:
+        model = args[0]
+    # Positional args are forwarded verbatim, so args[0] is whatever the caller passed;
+    # only a string can be a litellm model name.
+    return model if isinstance(model, str) else ""
+
+
+def inference_call(kwargs: dict[str, Any], args: tuple[Any, ...] = ()) -> Any:
+    """Begin recording one litellm call. Never raises, never returns None."""
+    try:
+        # See sgp_obs_setup.py: optional, not publicly installable, absent in CI.
+        from sgp_obs.metrics import genai  # type: ignore[import-not-found]
+    except Exception:
+        global _warned
+        if not _warned:
+            _warned = True
+            logger.debug(
+                "sgp-obs is not available; GenAI metrics are off for litellm calls"
+            )
+        return _NULL_CALL
+
+    try:
+        model = resolve_model(args, kwargs)
+        vendor, over_openai_client = _split_model(model)
+        return genai.call(
+            provider=vendor,
+            operation=genai.CHAT,
+            model=model,
+            # litellm normalises every vendor's response onto the OpenAI shape, so one
+            # parser reads them all — which is exactly what `spec` separates from the
+            # `provider` label.
+            spec=genai.OPENAI_SPEC,
+            transport=genai.OPENAI if over_openai_client else "",
+        )
+    except Exception:
+        logger.debug("could not start a GenAI metrics record", exc_info=True)
+        return _NULL_CALL
+
+
+class _NullCall:
+    """What call sites get when sgp-obs is absent. Records nothing, costs nothing."""
+
+    def observe(self, response: Any) -> Any:
+        return response
+
+    # Underscored like __aexit__'s params below: present for parity with the real
+    # sgp-obs call object, never read here.
+    def failed(self, _error: BaseException) -> None:
+        return
+
+    async def __aenter__(self) -> "_NullCall":
+        return self
+
+    async def __aexit__(self, _exc_type: Any, _exc: Any, _tb: Any) -> bool:
+        return False  # never suppress the caller's exception
+
+
+_NULL_CALL = _NullCall()
diff --git a/src/agentex/lib/core/adapters/llm/adapter_litellm.py b/src/agentex/lib/core/adapters/llm/adapter_litellm.py
index 7935f5f49..8fb1602aa 100644
--- a/src/agentex/lib/core/adapters/llm/adapter_litellm.py
+++ b/src/agentex/lib/core/adapters/llm/adapter_litellm.py
@@ -6,6 +6,7 @@
 from agentex.lib.utils.logging import make_logger
 from agentex.lib.types.llm_messages import Completion
 from agentex.lib.core.adapters.llm.port import LLMGateway
+from agentex.lib.core.adapters.llm._genai_metrics import inference_call
 
 logger = make_logger(__name__)
 
@@ -36,9 +37,13 @@ async def acompletion(self, *args, **kwargs) -> Completion:
                 "Please use self.acompletion_stream instead of self.acompletion to stream responses"
             )
 
-        # Return a single completion for non-streaming
-        response = await llm.acompletion(*args, **kwargs)
-        return Completion.model_validate(response)
+        # `async with`, not try/except: asyncio.CancelledError is a BaseException, so a
+        # caller that disappears mid-flight would skip an `except Exception` handler and
+        # the record would be silently dropped.
+        async with inference_call(kwargs, args) as call:
+            # Return a single completion for non-streaming
+            response = call.observe(await llm.acompletion(*args, **kwargs))
+            return Completion.model_validate(response)
 
     @override
     async def acompletion_stream(
@@ -47,5 +52,11 @@ async def acompletion_stream(
         if not kwargs.get("stream"):
             raise ValueError("To use streaming, please set stream=True in the kwargs")
 
-        async for chunk in await llm.acompletion(*args, **kwargs):  # type: ignore[misc]
-            yield Completion.model_validate(chunk)
+        async with inference_call(kwargs, args) as call:
+            # observe() takes ownership of the stream and yields the same chunks, so it
+            # can read time-to-first-chunk and the token totals off the last chunk.
+            # Wrapping only the `await` would return before the first chunk arrived and
+            # record zero tokens for every streamed call.
+            stream = call.observe(await llm.acompletion(*args, **kwargs))
+            async for chunk in stream:  # type: ignore[misc]
+                yield Completion.model_validate(chunk)
diff --git a/src/agentex/lib/core/adapters/llm/tests/__init__.py b/src/agentex/lib/core/adapters/llm/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/src/agentex/lib/core/adapters/llm/tests/test_genai_metrics.py b/src/agentex/lib/core/adapters/llm/tests/test_genai_metrics.py
new file mode 100644
index 000000000..b4276fdb1
--- /dev/null
+++ b/src/agentex/lib/core/adapters/llm/tests/test_genai_metrics.py
@@ -0,0 +1,174 @@
+"""Tests for ``agentex.lib.core.adapters.llm._genai_metrics``.
+
+The important property is the one that holds in every environment today: with
+``sgp-obs`` absent, :func:`inference_call` must hand back something the litellm
+gateway can drive as an async context manager, whose ``observe()`` returns the
+response untouched and which never swallows the caller's exception. That is the
+path every agent without the ``obs`` extra takes on every model call, so a
+regression here breaks model calls rather than just losing a metric.
+"""
+
+from __future__ import annotations
+
+import sys
+import builtins
+
+import pytest
+
+from agentex.lib.core.adapters.llm import _genai_metrics
+from agentex.lib.core.adapters.llm._genai_metrics import (
+    _split_model,
+    resolve_model,
+    inference_call,
+)
+
+
+class TestSplitModel:
+    """``(vendor, goes_out_over_the_openai_client)``. The boolean decides whether
+    ``call()`` stands down for the OpenAI client instrumentor or records itself, so
+    getting it wrong either double-counts a call or loses it."""
+
+    @pytest.mark.parametrize(
+        ("model", "vendor", "over_openai_client"),
+        [
+            # Proxy mode: litellm sends this to an OpenAI-compatible proxy over the
+            # openai client, but the caller asked for a non-OpenAI vendor.
+            ("litellm_proxy/anthropic/claude-sonnet-4", "anthropic", True),
+            ("litellm_proxy/gpt-4o", "openai", True),
+            # Native routing: litellm's own handler, no openai client involved.
+            ("anthropic/claude-sonnet-4", "anthropic", False),
+            ("bedrock/anthropic.claude-v2", "bedrock", False),
+            ("vertex_ai/gemini-2.0-flash", "vertex_ai", False),
+            # A bare name is OpenAI per litellm's default, and reaches OpenAI
+            # through the openai client — so the instrumentor already sees it.
+            ("gpt-4o", "openai", True),
+            ("openai/gpt-4o", "openai", True),
+        ],
+    )
+    def test_vendor_and_transport(self, model, vendor, over_openai_client):
+        assert _split_model(model) == (vendor, over_openai_client)
+
+    def test_empty_model_does_not_raise(self):
+        """kwargs.get("model") is "" when a caller passes model positionally.
+        Falling back to litellm's own default is right, and must not blow up."""
+        assert _split_model("") == ("openai", True)
+
+
+class TestFailsOpenWithoutSgpObs:
+    @staticmethod
+    def _hide_sgp_obs(monkeypatch):
+        for name in [m for m in sys.modules if m.startswith("sgp_obs")]:
+            monkeypatch.delitem(sys.modules, name, raising=False)
+        real_import = builtins.__import__
+
+        def no_sgp_obs(name, *args, **kwargs):
+            if name == "sgp_obs" or name.startswith("sgp_obs."):
+                raise ImportError("No module named 'sgp_obs'")
+            return real_import(name, *args, **kwargs)
+
+        monkeypatch.setattr(builtins, "__import__", no_sgp_obs)
+        # The "already warned" latch is module state; reset so the path is exercised.
+        monkeypatch.setattr(_genai_metrics, "_warned", False)
+
+    def test_returns_a_usable_recorder_not_none(self, monkeypatch):
+        self._hide_sgp_obs(monkeypatch)
+        assert inference_call({"model": "gpt-4o"}) is _genai_metrics._NULL_CALL
+
+    async def test_observe_returns_the_response_unchanged(self, monkeypatch):
+        """The gateway does `call.observe(await acompletion(...))`, so an observe()
+        that returned None would turn every completion into None."""
+        self._hide_sgp_obs(monkeypatch)
+        sentinel = object()
+        async with inference_call({"model": "gpt-4o"}) as call:
+            assert call.observe(sentinel) is sentinel
+
+    async def test_does_not_suppress_the_callers_exception(self, monkeypatch):
+        """__aexit__ must return falsey. Suppressing here would make a failed model
+        call look like a successful one that returned nothing."""
+        self._hide_sgp_obs(monkeypatch)
+        with pytest.raises(ValueError, match="upstream"):
+            async with inference_call({"model": "gpt-4o"}):
+                raise ValueError("upstream blew up")
+
+    async def test_cancellation_still_propagates(self, monkeypatch):
+        """CancelledError is a BaseException; the `async with` in the gateway exists
+        so a disappearing caller is not silently dropped."""
+        import asyncio
+
+        self._hide_sgp_obs(monkeypatch)
+        with pytest.raises(asyncio.CancelledError):
+            async with inference_call({"model": "gpt-4o"}):
+                raise asyncio.CancelledError()
+
+    def test_a_broken_sgp_obs_does_not_break_a_model_call(self, monkeypatch):
+        """Not just ImportError: anything raised while starting a record must fall
+        back to the null recorder."""
+        module = type(sys)("sgp_obs.metrics")
+        genai = type(sys)("genai")
+
+        def exploding(**_kwargs):
+            raise RuntimeError("sgp-obs internals changed")
+
+        genai.call = exploding
+        genai.CHAT = "chat"
+        genai.OPENAI_SPEC = "openai"
+        genai.OPENAI = "openai"
+        module.genai = genai
+        monkeypatch.setitem(sys.modules, "sgp_obs", type(sys)("sgp_obs"))
+        monkeypatch.setitem(sys.modules, "sgp_obs.metrics", module)
+        assert inference_call({"model": "gpt-4o"}) is _genai_metrics._NULL_CALL
+
+
+class TestResolveModel:
+    """litellm takes `model` as its FIRST positional argument and the gateway forwards
+    *args untouched, so a positional call is legal and must still be measured.
+
+    Reading only kwargs does not merely mislabel the vendor: an empty model resolves to
+    the default vendor "openai", which sets transport=OPENAI, which makes call() stand
+    down for the OpenAI client instrumentor — while litellm routes natively to Anthropic
+    and never touches that client. Nothing records it and nothing says so.
+    """
+
+    def test_keyword_model(self):
+        assert resolve_model((), {"model": "gpt-4o"}) == "gpt-4o"
+
+    def test_positional_model(self):
+        assert resolve_model(("anthropic/claude-sonnet-4",), {}) == "anthropic/claude-sonnet-4"
+
+    def test_keyword_wins_over_positional(self):
+        """litellm itself would reject both, but if it ever resolved one, the keyword is
+        the explicit intent."""
+        assert resolve_model(("a/b",), {"model": "c/d"}) == "c/d"
+
+    def test_no_model_at_all(self):
+        assert resolve_model((), {}) == ""
+
+    def test_a_non_string_first_arg_is_not_a_model(self):
+        """*args is forwarded verbatim, so args[0] is whatever the caller passed."""
+        assert resolve_model(([{"role": "user"}],), {}) == ""
+
+    def test_positional_native_vendor_does_not_stand_down(self, monkeypatch):
+        """The regression this guards: a positional Anthropic model must be recorded by
+        the gateway, because nothing else will."""
+        seen = {}
+
+        class _Genai:
+            CHAT = "chat"
+            OPENAI_SPEC = "openai"
+            OPENAI = "openai"
+
+            @staticmethod
+            def call(**kwargs):
+                seen.update(kwargs)
+                return _genai_metrics._NULL_CALL
+
+        module = type(sys)("sgp_obs.metrics")
+        module.genai = _Genai
+        monkeypatch.setitem(sys.modules, "sgp_obs", type(sys)("sgp_obs"))
+        monkeypatch.setitem(sys.modules, "sgp_obs.metrics", module)
+
+        inference_call({}, ("anthropic/claude-sonnet-4",))
+        assert seen["model"] == "anthropic/claude-sonnet-4"
+        assert seen["provider"] == "anthropic"
+        # Empty transport == "no OpenAI-client overlap, so record it here".
+        assert seen["transport"] == ""
diff --git a/src/agentex/lib/core/observability/sgp_obs_setup.py b/src/agentex/lib/core/observability/sgp_obs_setup.py
new file mode 100644
index 000000000..5b76766f5
--- /dev/null
+++ b/src/agentex/lib/core/observability/sgp_obs_setup.py
@@ -0,0 +1,350 @@
+"""Optional sgp-obs wiring: traces, metrics and logs, switched on by environment.
+
+Why this lives in the SDK rather than in each agent: the fleet is ~147 agent repos,
+and their deployments pin an exact SDK version. Doing the wiring here means an agent
+adopts observability by installing ``sgp-obs`` and setting environment, instead of
+carrying the wiring code — including the two parts that are easy to get wrong and
+fail silently (where ``init()`` is called from, and flushing on the way out).
+
+``sgp-obs`` is NOT declared as a dependency or an extra of this package. It is not on
+public PyPI, and declaring it would make this repo's own uv workspace unresolvable:
+``uv sync`` re-locks, locking must resolve every declared optional dependency, and
+neither ``--no-extra`` nor ``[tool.uv] override-dependencies`` exempts one. So the
+contract is inverted — an agent declares ``sgp-obs[genai-auto,http,otlp]`` itself,
+against Scale's curated mirror, and this module wires it if it is importable. Nothing
+here imports ``sgp_obs`` outside a ``try``, so a plain ``pip install agentex-sdk``
+behaves exactly as it did before this module existed.
+
+TWO gates, both of which must pass before anything is recorded:
+
+1. ``sgp-obs`` must be importable. If it is not, this returns ``"not_installed"``.
+2. The environment must ask for it. As of sgp-obs 0.16.0 every signal is opt-in
+   TWICE: the master switch ``SGP_OBS_ENABLED=true``, AND that signal's
+   ``*_DISABLED`` variable set to an explicit ``false``. An unset ``*_DISABLED``
+   leaves the signal OFF. So the master switch on its own wires nothing at all —
+   measured on 0.16.0, ``SGP_OBS_ENABLED=true`` alone returns zero handles. All
+   three signals together need::
+
+       SGP_OBS_ENABLED=true
+       SGP_METRICS_DISABLED=false
+       SGP_TRACES_DISABLED=false
+       SGP_LOGS_DISABLED=false
+
+   That inverts the advice written against 0.15.0, where traces came on with the
+   master switch and had to be turned off. This module does not second-guess the
+   gate — it calls ``init()`` and reports which signals came back — but it does
+   warn when the master switch is on and nothing wired, because that combination
+   is otherwise completely silent.
+
+Metrics additionally need an OTLP endpoint. sgp-obs never builds a MeterProvider
+from nothing; in a cluster the OTel Operator's auto-instrumentation normally
+supplies one, and agent pods get no injection, so ``OTEL_EXPORTER_OTLP_ENDPOINT``
+has to be on the pod spec.
+
+Fail-open is absolute: this is telemetry, and no failure here may stop an agent from
+starting or serving. Every path returns a status string instead of raising.
+"""
+
+from __future__ import annotations
+
+import os
+from typing import Any
+
+from agentex.lib.utils.logging import (
+    make_logger,
+    _reset_for_tests as _logging_reset_for_tests,
+    route_agentex_loggers_to_root,
+)
+
+logger = make_logger(__name__)
+
+_status: str | None = None
+
+# sgp-obs' own truthy set (sgp_obs.env._TRUTHY), so "is the master switch on?" is
+# answered the same way here as in the library deciding whether to wire.
+_TRUTHY = {"1", "true", "yes", "on"}
+
+# The logs-profile selector. The SDK knows the runtime is agentex; an agent author
+# would have to know to pass it. It stamps agent_id (from AGENT_ID) and task_id (from
+# the SDK's streaming contextvar) onto every log record.
+_SOURCE = "agentex"
+
+
+def _master_switch_on() -> bool:
+    return (os.getenv("SGP_OBS_ENABLED") or "").strip().lower() in _TRUTHY
+
+
+def init_sgp_obs(app: Any = None) -> str:
+    """Wire sgp-obs if it is installed and enabled. Returns a status; never raises.
+
+    Statuses: ``"not_installed"``, ``"disabled"``, ``"wired:<signals>"``, ``"error"``.
+
+    ``app`` is the ACP server. Passing it is what adds ``http.server.*`` for the
+    agent's own entry point — without it the agent is observable only from the
+    model call outwards, and its own latency and error rate cannot be alerted on.
+    It is also what installs the trace-context ingress middleware, so an incoming
+    ``traceparent`` continues into the agent's spans rather than starting a new trace.
+    """
+    global _status
+    if _status is not None:
+        # init() is not meant to run twice, and a Temporal worker plus an ACP
+        # server can both reach this in one process.
+        return _status
+
+    try:
+        # Not resolvable in a normal env: sgp-obs is not a dependency of this
+        # package and is not on public PyPI. That is the case this branch exists for.
+        import sgp_obs  # type: ignore[import-not-found]
+    except ImportError:
+        if _master_switch_on():
+            # The operator asked for observability and the package is absent. Silence
+            # here is the worst outcome, so say what is missing and how to fix it.
+            logger.warning(
+                "SGP_OBS_ENABLED is set but sgp-obs is not installed, so no telemetry "
+                "will be produced. Add sgp-obs[genai-auto,http,otlp] to this agent's "
+                "dependencies (it resolves from Scale's curated mirror, not public PyPI)."
+            )
+        _status = "not_installed"
+        return _status
+    except Exception:  # pragma: no cover - a broken install must not stop startup
+        logger.debug("sgp-obs import failed unexpectedly", exc_info=True)
+        _status = "error"
+        return _status
+
+    try:
+        handles = sgp_obs.init(
+            app=app,
+            # Fills OTEL_SERVICE_NAME only when the deployment left it unset or
+            # blank; the deployment always outranks this. Without either, every
+            # signal is attributed to service.name="unknown".
+            service_name=(os.getenv("AGENT_NAME") or "").strip() or None,
+            source=_SOURCE,
+        )
+    except Exception:  # pragma: no cover - sgp_obs.init is itself fail-open
+        # One deliberate exception to its fail-open rule: under the standard CI
+        # variable, any logs misconfiguration raises so a build cannot pass while
+        # logging is broken. Swallowed here regardless — an agent must still serve.
+        logger.warning("sgp-obs initialization failed; continuing without it", exc_info=True)
+        _status = "error"
+        return _status
+
+    if not handles:
+        if _master_switch_on():
+            # 0.16.0's double opt-in: the master switch alone wires nothing, and
+            # sgp-obs says nothing about it. Name the variables that are missing.
+            logger.warning(
+                "SGP_OBS_ENABLED is set but no sgp-obs signal is enabled, so nothing "
+                "will be exported. Each signal is opt-in separately: set "
+                "SGP_METRICS_DISABLED=false, SGP_TRACES_DISABLED=false and "
+                "SGP_LOGS_DISABLED=false for the signals you want. An unset "
+                "*_DISABLED leaves that signal off."
+            )
+        # Otherwise expected, and the default: an agent with sgp-obs installed still
+        # records nothing until someone sets the environment.
+        _status = "disabled"
+        return _status
+
+    if "logs" in handles:
+        _hand_agentex_logging_to_the_pipeline()
+
+    if "traces" in handles:
+        _install_openai_agents_bridge()
+        _warn_if_correlation_backend_mismatched()
+
+    _status = "wired:" + ",".join(sorted(handles))
+    logger.info("sgp-obs wired (%s)", _status)
+    return _status
+
+
+def _hand_agentex_logging_to_the_pipeline() -> None:
+    """Stop agentex's own loggers printing a second, ungoverned copy of every record.
+
+    ``agentex.lib.utils.logging.make_logger`` attaches a handler to each module's own
+    (leaf) logger. sgp-obs' logs pipeline replaces the handlers on the ROOT logger and
+    deliberately leaves named loggers alone, because a named logger's handler may be
+    there on purpose. The two are individually correct and together print everything
+    twice: once in agentex's plain-text format from the leaf, once as pipeline JSON
+    from root. Measured on sgp-obs 0.16.0, one ``logger.info()`` gave two stdout lines,
+    and sgp-obs' boot warning named 63 loggers.
+
+    The duplicate is not merely redundant: it is emitted before the pipeline's filters,
+    so it carries no ``agent_id``/``task_id``, is not governed by the allowlist, and is
+    not truncated.
+
+    Only agentex's loggers are handed over — see
+    :func:`~agentex.lib.utils.logging.route_agentex_loggers_to_root` for why by prefix,
+    why ``capture_loggers=`` is not the mechanism, and why a third party's handler is
+    left where it is.
+    """
+    try:
+        cleared = route_agentex_loggers_to_root()
+    except Exception:  # pragma: no cover - telemetry must never break startup
+        logger.debug("could not hand agentex logging to the sgp-obs pipeline", exc_info=True)
+        return
+
+    if cleared:
+        # sgp-obs has already logged its "bypass log governance" warning by this point,
+        # naming loggers this call has just fixed. Say so, or the two lines read as a
+        # contradiction to whoever is looking at the pod's first second of output.
+        logger.info(
+            "routed %d agentex logger(s) through the sgp-obs logs pipeline; any "
+            "'bypass log governance' warning above that names agentex.* loggers was "
+            "emitted before this ran and no longer applies to them",
+            cleared,
+        )
+
+
+def _install_openai_agents_bridge() -> bool:
+    """Register sgp-obs' openai-agents trace processor, so a ``Runner`` turn produces
+    logical model-operation spans.
+
+    This is the one piece of traces wiring ``sgp_obs.init()`` does NOT do for itself.
+    Measured on 0.16.0 after a plain ``init()`` with the traces signal on:
+
+        GenAI attempt span processor  installed
+        litellm logical adapter       installed
+        httpx / aiohttp egress        instrumented
+        openai-agents bridge          NOT installed
+
+    which is why the obs-test agents each carry a hand-written bootstrap that calls it.
+    It matters more than the others here: roughly 83% of model-calling agents reach the
+    model through the openai-agents ``Runner``, so without this the dominant path
+    contributes no logical spans and "traces on" looks like it does nothing.
+
+    Unconditional because ``openai-agents`` is a hard dependency of this SDK, so the
+    ``agents`` package is importable in every agent. The call is idempotent and returns
+    False rather than raising when the SDK is somehow absent.
+    """
+    try:
+        from sgp_obs.traces import install_openai_agents_bridge  # type: ignore[import-not-found]
+
+        installed = bool(install_openai_agents_bridge())
+        if installed:
+            logger.debug("sgp-obs openai-agents bridge installed")
+            _warn_if_openai_agents_tracing_disabled()
+        else:
+            # Only reachable if `agents` is not importable, which should not happen
+            # while openai-agents is a hard dependency — so say so rather than shrug.
+            logger.warning(
+                "sgp-obs openai-agents bridge did not install; Runner turns will "
+                "produce no logical model-operation spans."
+            )
+        return installed
+    except Exception:  # pragma: no cover - telemetry must never break startup
+        logger.debug("sgp-obs openai-agents bridge unavailable", exc_info=True)
+        return False
+
+
+def _warn_if_openai_agents_tracing_disabled() -> None:
+    """Warn when the bridge is installed but openai-agents tracing is switched off.
+
+    ``install_openai_agents_bridge()`` returns True as soon as it registers itself as a
+    trace processor — it cannot tell whether the provider will ever feed it. If the
+    agent called ``set_tracing_disabled(True)``, no spans are produced at all, so the
+    bridge is registered and permanently idle, and nothing says so.
+
+    That is not hypothetical: it is what the openai-agents scaffolds used to do, so
+    agents generated before this change carry it. Those scaffolds now clear the
+    processor list instead, which removes the OpenAI exporter (the thing they were
+    actually trying to avoid) while leaving spans flowing to the bridge.
+
+    Reads a private attribute, so it is fully guarded: a diagnostic must never be the
+    reason startup fails, and if upstream renames it we simply stop warning.
+    """
+    try:
+        from agents.tracing import get_trace_provider
+
+        if getattr(get_trace_provider(), "_disabled", False):
+            logger.warning(
+                "The sgp-obs openai-agents bridge is installed but openai-agents "
+                "tracing is disabled, so Runner turns will produce no model spans. "
+                "Replace set_tracing_disabled(True) with set_trace_processors([]): "
+                "that still stops traces reaching api.openai.com, but keeps spans "
+                "flowing to the bridge."
+            )
+    except Exception:  # pragma: no cover - a diagnostic must never break startup
+        logger.debug("could not determine openai-agents tracing state", exc_info=True)
+
+
+def _warn_if_correlation_backend_mismatched() -> None:
+    """Warn when sgp-obs is exporting OTel traces but the SDK's business-span
+    correlation is still reading ddtrace.
+
+    The SDK has had its own correlation for a while (core/tracing/obs_span.py). It
+    writes BOTH directions of the link between a business span and an obs span:
+
+      forward  — obs_trace_id / obs_span_id onto the business span's data, so the
+                 SGP tracing UI can pivot to Tempo
+      backward — agentex.business_span_id / agentex.business_trace_id onto the OTel
+                 span, so Tempo can pivot back
+
+    Which backend it opens that span in is chosen by SGP_OBS_MODE, which defaults to
+    ``dd_only``. In that mode it opens a ddtrace span, and only if a ddtrace trace is
+    already active — which on a bare-uvicorn agent it never is. So the wrapper is
+    never opened, the correlation dict comes back empty, and BOTH edges vanish
+    silently while the traces signal still reports itself as wired.
+
+    Measured on sgp-obs 0.16.0 with a real business span: mode unset gives zero
+    exported spans and no ids in either direction; SGP_OBS_MODE=lgtm gives the
+    span, both tags, and a round trip that closes (the business span's obs_span_id
+    equals the exported span's span id, and the span's agentex.business_span_id
+    equals the business span's id).
+
+    Warn rather than set it: SGP_OBS_MODE also steers correlation reads elsewhere,
+    and an agent genuinely running ddtrace (the Centipede family) would be misread
+    if this flipped underneath it. The operator picks; this only makes the silent
+    case audible.
+    """
+    try:
+        from agentex.lib.core.tracing.obs_ids import LGTM, get_obs_mode
+
+        if get_obs_mode() != LGTM:
+            logger.warning(
+                "sgp-obs wired the traces signal (OpenTelemetry), but SGP_OBS_MODE is "
+                "%r, so this SDK's business-span correlation still targets ddtrace and "
+                "will not link anything. Set SGP_OBS_MODE=lgtm to get both edges: "
+                "obs_trace_id/obs_span_id on the business span, and "
+                "agentex.business_span_id/agentex.business_trace_id on the OTel span.",
+                get_obs_mode(),
+            )
+    except Exception:  # pragma: no cover - a diagnostic must never break startup
+        logger.debug("could not check SGP_OBS_MODE", exc_info=True)
+
+
+async def shutdown_sgp_obs() -> None:
+    """Flush the providers ``init()`` built. Never raises.
+
+    Without this, whatever is sitting in a periodic exporter's buffer when the pod
+    stops is dropped — which for a short-lived or scaled-to-zero agent can be most
+    of what it recorded. sgp-obs only flushes providers it OWNS; one adopted from
+    the runtime is left to its owner, so this is safe under operator injection.
+
+    Run in a thread: the flush blocks up to the SDK export timeout per owned signal,
+    and this is called from an async lifespan.
+    """
+    if _status is None or not _status.startswith("wired"):
+        return
+
+    try:
+        import asyncio
+
+        import sgp_obs  # type: ignore[import-not-found]
+
+        # Added in sgp-obs 0.16.0. Feature-detected rather than version-pinned,
+        # because this package does not depend on sgp-obs and so cannot set a floor.
+        shutdown = getattr(sgp_obs, "shutdown", None)
+        if shutdown is None:
+            logger.debug("sgp-obs has no shutdown(); needs 0.16.0+ to flush on exit")
+            return
+        await asyncio.to_thread(shutdown)
+    except Exception:  # pragma: no cover - a failed flush must not fail shutdown
+        logger.debug("sgp-obs shutdown failed", exc_info=True)
+
+
+def _reset_for_tests() -> None:
+    global _status
+    _status = None
+    # The logging hand-over is a process-wide latch too, and a test that wired the
+    # logs signal would otherwise leave make_logger attaching nothing for the rest
+    # of the session.
+    _logging_reset_for_tests()
diff --git a/src/agentex/lib/core/observability/tests/test_sgp_obs_setup.py b/src/agentex/lib/core/observability/tests/test_sgp_obs_setup.py
new file mode 100644
index 000000000..34d2ef3ad
--- /dev/null
+++ b/src/agentex/lib/core/observability/tests/test_sgp_obs_setup.py
@@ -0,0 +1,447 @@
+"""Tests for ``agentex.lib.core.observability.sgp_obs_setup``.
+
+The property under test is that this can never hurt a caller: whatever the state of
+sgp-obs or the environment, ``init_sgp_obs`` returns a status string and does not
+raise, and ``shutdown_sgp_obs`` does not raise. Both gates get a test, plus the
+failure modes, the two silent-misconfiguration warnings, and the flush.
+
+These never import the real sgp-obs — it is absent in CI by design — so every test
+installs a stand-in whose ``init`` is under the test's control.
+"""
+
+from __future__ import annotations
+
+import sys
+import builtins
+from contextlib import contextmanager
+
+import pytest
+
+from agentex.lib.core.observability import sgp_obs_setup
+from agentex.lib.core.observability.sgp_obs_setup import init_sgp_obs, shutdown_sgp_obs
+
+_SWITCHES = (
+    "SGP_OBS_ENABLED",
+    "SGP_METRICS_DISABLED",
+    "SGP_TRACES_DISABLED",
+    "SGP_LOGS_DISABLED",
+    "AGENT_NAME",
+)
+
+
+@pytest.fixture(autouse=True)
+def _reset(monkeypatch):
+    """The status is cached process-wide, so every test starts from unset. The
+    environment is cleared too: two code paths branch on the master switch, and a
+    developer with SGP_OBS_ENABLED exported would otherwise flip those tests."""
+    for name in _SWITCHES:
+        monkeypatch.delenv(name, raising=False)
+    sgp_obs_setup._reset_for_tests()
+    yield
+    sgp_obs_setup._reset_for_tests()
+
+
+@contextmanager
+def caplog_at(monkeypatch):
+    """Collect sgp_obs_setup's WARNING messages regardless of root config."""
+    records: list[str] = []
+    monkeypatch.setattr(
+        sgp_obs_setup.logger, "warning",
+        lambda msg, *a, **_k: records.append(msg % a if a else msg),
+    )
+    yield records
+
+
+def _fake_sgp_obs(monkeypatch, init=None, shutdown=None, bridge=None):
+    """Install a stand-in ``sgp_obs`` module whose entry points we control.
+
+    ``bridge`` stands in for ``sgp_obs.traces.install_openai_agents_bridge``; it lives
+    on a fake ``sgp_obs.traces`` submodule because that is how the SDK imports it.
+    """
+    module = type(sys)("sgp_obs")
+    module.init = init if init is not None else (lambda **_kwargs: {"metrics": object()})
+    if shutdown is not None:
+        module.shutdown = shutdown
+    monkeypatch.setitem(sys.modules, "sgp_obs", module)
+
+    traces = type(sys)("sgp_obs.traces")
+    traces.install_openai_agents_bridge = bridge if bridge is not None else (lambda: True)
+    monkeypatch.setitem(sys.modules, "sgp_obs.traces", traces)
+    return module
+
+
+def _block_sgp_obs_import(monkeypatch, exc=None):
+    monkeypatch.delitem(sys.modules, "sgp_obs", raising=False)
+    real_import = builtins.__import__
+    error = exc or ImportError("No module named 'sgp_obs'")
+
+    def blocked(name, *args, **kwargs):
+        if name == "sgp_obs" or name.startswith("sgp_obs."):
+            raise error
+        return real_import(name, *args, **kwargs)
+
+    monkeypatch.setattr(builtins, "__import__", blocked)
+
+
+class TestGateOneSgpObsNotInstalled:
+    def test_missing_package_is_reported_not_raised(self, monkeypatch):
+        _block_sgp_obs_import(monkeypatch)
+        assert init_sgp_obs() == "not_installed"
+
+    def test_a_broken_install_does_not_stop_startup(self, monkeypatch):
+        """An ImportError is ordinary; anything else is a broken install, not a
+        missing one, and must still be swallowed."""
+        _block_sgp_obs_import(monkeypatch, RuntimeError("half-installed wheel"))
+        assert init_sgp_obs() == "error"
+
+    def test_silence_is_expected_when_nobody_asked(self, monkeypatch, caplog):
+        """sgp-obs is not a dependency, so absent-and-unasked-for is the normal
+        case for every agent. It must not warn."""
+        _block_sgp_obs_import(monkeypatch)
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "not_installed"
+        assert caplog.records == []
+
+    def test_enabled_but_missing_says_what_to_install(self, monkeypatch, caplog):
+        """The one case that must be loud: the operator asked for observability and
+        the package is not there. Silence would look like working instrumentation."""
+        monkeypatch.setenv("SGP_OBS_ENABLED", "true")
+        _block_sgp_obs_import(monkeypatch)
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "not_installed"
+        assert len(caplog.records) == 1
+        assert "sgp-obs is not installed" in caplog.text
+        assert "genai-auto,http,otlp" in caplog.text
+
+
+class TestGateTwoEnvironmentSwitches:
+    def test_no_handles_means_disabled(self, monkeypatch):
+        """sgp_obs.init() returns an empty dict when the master switch or every
+        per-signal switch is off. That is the DEFAULT: sgp-obs installed, and
+        recording nothing until someone sets the environment."""
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {})
+        assert init_sgp_obs() == "disabled"
+
+    def test_disabled_and_unasked_for_is_quiet(self, monkeypatch, caplog):
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {})
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "disabled"
+        assert caplog.records == []
+
+    def test_master_switch_on_but_nothing_wired_names_the_variables(
+        self, monkeypatch, caplog
+    ):
+        """sgp-obs 0.16.0 made every signal opt-in twice: the master switch plus an
+        explicit *_DISABLED=false. So SGP_OBS_ENABLED on its own wires nothing and
+        says nothing, which is the single easiest way to believe an agent is
+        instrumented when it is not."""
+        monkeypatch.setenv("SGP_OBS_ENABLED", "true")
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {})
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "disabled"
+        assert len(caplog.records) == 1
+        for var in ("SGP_METRICS_DISABLED", "SGP_TRACES_DISABLED", "SGP_LOGS_DISABLED"):
+            assert var in caplog.text
+
+    @pytest.mark.parametrize("raw", ["1", "true", "TRUE", "yes", "on"])
+    def test_master_switch_truthy_forms(self, monkeypatch, caplog, raw):
+        """Matched to sgp_obs.env._TRUTHY, so this module's idea of "on" is the
+        same as the library's. A mismatch would put the warning on the wrong side."""
+        monkeypatch.setenv("SGP_OBS_ENABLED", raw)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {})
+        with caplog.at_level("WARNING"):
+            init_sgp_obs()
+        assert len(caplog.records) == 1
+
+    def test_traces_without_lgtm_mode_warns_that_correlation_is_dead(
+        self, monkeypatch
+    ):
+        """SGP_OBS_MODE defaults to dd_only, where the SDK's business-span wrapper
+        only opens if a ddtrace trace is already active — never true on a
+        bare-uvicorn agent. So both correlation edges vanish while the traces
+        signal still reports itself wired. Measured: mode unset -> zero exported
+        spans and no ids either way; lgtm -> both edges, round trip closes."""
+        monkeypatch.delenv("SGP_OBS_MODE", raising=False)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"traces": object()})
+        with caplog_at(monkeypatch) as records:
+            assert init_sgp_obs() == "wired:traces"
+        assert any("SGP_OBS_MODE" in r for r in records)
+
+    def test_traces_with_lgtm_mode_is_quiet(self, monkeypatch, caplog):
+        monkeypatch.setenv("SGP_OBS_MODE", "lgtm")
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"traces": object()})
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "wired:traces"
+        assert caplog.records == []
+
+    def test_metrics_only_does_not_warn_about_the_mode(self, monkeypatch, caplog):
+        """The correlation edges are a traces concern. A metrics-only agent has no
+        business-span linking to lose, so the warning would be noise."""
+        monkeypatch.delenv("SGP_OBS_MODE", raising=False)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"metrics": object()})
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "wired:metrics"
+        assert caplog.records == []
+
+    def test_all_three_signals_are_named_in_the_status(self, monkeypatch):
+        _fake_sgp_obs(
+            monkeypatch,
+            lambda **_kwargs: {"logs": object(), "metrics": object(), "traces": object()},
+        )
+        assert init_sgp_obs() == "wired:logs,metrics,traces"
+
+
+class TestWhatIsPassedToSgpObs:
+    @staticmethod
+    def _capture(monkeypatch):
+        seen = {}
+
+        def capture(**kwargs):
+            seen.update(kwargs)
+            return {"metrics": object()}
+
+        _fake_sgp_obs(monkeypatch, capture)
+        return seen
+
+    def test_app_reaches_sgp_obs(self, monkeypatch):
+        """Passing the ACP server is what adds http.server.* for the agent's own
+        entry point and installs the trace-context ingress, so it must not be
+        silently dropped."""
+        seen = self._capture(monkeypatch)
+        sentinel = object()
+        init_sgp_obs(app=sentinel)
+        assert seen["app"] is sentinel
+
+    def test_source_is_agentex(self, monkeypatch):
+        """The SDK knows the runtime; an agent author would have to know to pass it.
+        It is what stamps agent_id and task_id onto log records."""
+        seen = self._capture(monkeypatch)
+        init_sgp_obs()
+        assert seen["source"] == "agentex"
+
+    def test_agent_name_is_offered_as_the_service_name(self, monkeypatch):
+        """sgp-obs fills OTEL_SERVICE_NAME from this only when the deployment left
+        it unset; without either, every signal is attributed to "unknown"."""
+        monkeypatch.setenv("AGENT_NAME", "compass-sleep-agent")
+        seen = self._capture(monkeypatch)
+        init_sgp_obs()
+        assert seen["service_name"] == "compass-sleep-agent"
+
+    @pytest.mark.parametrize("raw", ["", "   "])
+    def test_blank_agent_name_is_passed_as_none(self, monkeypatch, raw):
+        """Blank is the Helm rendered-empty idiom. Forwarding "" would have sgp-obs
+        set OTEL_SERVICE_NAME to an empty string rather than leave it alone."""
+        monkeypatch.setenv("AGENT_NAME", raw)
+        seen = self._capture(monkeypatch)
+        init_sgp_obs()
+        assert seen["service_name"] is None
+
+
+class TestFailOpen:
+    def test_an_exception_from_init_is_swallowed(self, monkeypatch):
+        def boom(**_kwargs):
+            raise ValueError("boom")
+
+        _fake_sgp_obs(monkeypatch, boom)
+        assert init_sgp_obs() == "error"
+
+    def test_a_ci_logs_misconfiguration_still_does_not_stop_startup(self, monkeypatch):
+        """sgp_obs.init has one deliberate exception to its own fail-open rule: under
+        the CI variable, a logs misconfiguration raises. An agent must still serve."""
+
+        def strict(**_kwargs):
+            raise RuntimeError("MisconfigurationError: drop mode without an allowlist")
+
+        _fake_sgp_obs(monkeypatch, strict)
+        assert init_sgp_obs() == "error"
+
+    def test_status_is_computed_once(self, monkeypatch):
+        """A Temporal worker and an ACP server can both reach this in one process;
+        sgp_obs.init() is not meant to run twice."""
+        calls = []
+
+        def counting(**kwargs):
+            calls.append(kwargs)
+            return {"metrics": object()}
+
+        _fake_sgp_obs(monkeypatch, counting)
+        assert init_sgp_obs() == "wired:metrics"
+        assert init_sgp_obs() == "wired:metrics"
+        assert len(calls) == 1
+
+
+class TestShutdown:
+    async def test_flushes_when_wired(self, monkeypatch):
+        """Without this the periodic exporter's buffer is dropped when the pod
+        stops, which for a short-lived agent can be most of what it recorded."""
+        called = []
+        _fake_sgp_obs(monkeypatch, shutdown=lambda: called.append(True))
+        assert init_sgp_obs() == "wired:metrics"
+        await shutdown_sgp_obs()
+        assert called == [True]
+
+    async def test_no_flush_when_never_wired(self, monkeypatch):
+        called = []
+        _fake_sgp_obs(
+            monkeypatch, init=lambda **_kwargs: {}, shutdown=lambda: called.append(True)
+        )
+        assert init_sgp_obs() == "disabled"
+        await shutdown_sgp_obs()
+        assert called == []
+
+    async def test_no_flush_before_init(self, monkeypatch):
+        """Called from the lifespan's finally, which runs even if startup failed
+        before the constructor's init_sgp_obs ever ran."""
+        called = []
+        _fake_sgp_obs(monkeypatch, shutdown=lambda: called.append(True))
+        await shutdown_sgp_obs()
+        assert called == []
+
+    async def test_an_older_sgp_obs_without_shutdown_is_tolerated(self, monkeypatch):
+        """shutdown() arrived in 0.16.0. This package declares no dependency on
+        sgp-obs and so cannot set a floor, hence feature detection."""
+        _fake_sgp_obs(monkeypatch)  # no shutdown attribute
+        assert init_sgp_obs() == "wired:metrics"
+        await shutdown_sgp_obs()  # must not raise
+
+    async def test_a_failing_flush_does_not_fail_shutdown(self, monkeypatch):
+        def boom():
+            raise RuntimeError("exporter timed out")
+
+        _fake_sgp_obs(monkeypatch, shutdown=boom)
+        assert init_sgp_obs() == "wired:metrics"
+        await shutdown_sgp_obs()  # must not raise
+
+
+class TestAnAgentStillServesWithoutSgpObs:
+    """Nitesh's verification item, startup half: an account not yet on the
+    CodeArtifact allowlist gets an image with no ``sgp_obs`` in it. The gate
+    returning ``not_installed`` is necessary but not sufficient — what has to hold
+    is that the ACP server still constructs and still answers requests. This
+    exercises the real constructor, which is where ``init_sgp_obs`` is called.
+    """
+
+    def test_acp_server_constructs_and_serves_healthz(self, monkeypatch):
+        from fastapi.testclient import TestClient
+
+        from agentex.lib.sdk.fastacp.base.base_acp_server import BaseACPServer
+
+        # Import first, unpatched, so the deep FastACP dependency chain loads
+        # cleanly; only sgp_obs is hidden, and only while the constructor runs.
+        _block_sgp_obs_import(monkeypatch)
+
+        server = BaseACPServer()
+        assert sgp_obs_setup._status == "not_installed"
+
+        # No `with`: that would run the lifespan, which registers the agent
+        # against a live control plane.
+        response = TestClient(server).get("/healthz")
+        assert response.status_code == 200
+        assert response.json() == {"status": "healthy"}
+
+    def test_the_json_rpc_route_is_still_mounted(self, monkeypatch):
+        """A server that answers /healthz but lost /api would pass a liveness probe
+        and fail every actual request."""
+        from agentex.lib.sdk.fastacp.base.base_acp_server import BaseACPServer
+
+        _block_sgp_obs_import(monkeypatch)
+        routes = {getattr(r, "path", None) for r in BaseACPServer().routes}
+        assert {"/healthz", "/api"} <= routes
+
+
+class TestOpenAIAgentsBridge:
+    """sgp_obs.init() installs the GenAI attempt processor, the litellm adapter and the
+    egress instrumentors by itself, but NOT the openai-agents bridge (measured on
+    0.16.0). That is the path ~83% of model-calling agents take, so the SDK installs it
+    — otherwise "traces on" produces no logical model-operation spans for most agents.
+    """
+
+    def test_installed_when_traces_are_wired(self, monkeypatch):
+        calls = []
+        _fake_sgp_obs(
+            monkeypatch,
+            init=lambda **_kwargs: {"traces": object()},
+            bridge=lambda: calls.append(True) or True,
+        )
+        monkeypatch.setenv("SGP_OBS_MODE", "lgtm")
+        assert init_sgp_obs() == "wired:traces"
+        assert calls == [True]
+
+    def test_not_installed_without_the_traces_signal(self, monkeypatch):
+        """A metrics-only agent has no span pipeline to feed, so installing an
+        openai-agents trace processor would be pointless work at startup."""
+        calls = []
+        _fake_sgp_obs(
+            monkeypatch,
+            init=lambda **_kwargs: {"metrics": object()},
+            bridge=lambda: calls.append(True) or True,
+        )
+        assert init_sgp_obs() == "wired:metrics"
+        assert calls == []
+
+    def test_a_bridge_that_declines_is_reported(self, monkeypatch, caplog):
+        """False means the `agents` SDK was not importable. openai-agents is a hard
+        dependency of this package, so that should be impossible — say so rather than
+        swallow it."""
+        monkeypatch.setenv("SGP_OBS_MODE", "lgtm")
+        _fake_sgp_obs(
+            monkeypatch, init=lambda **_kwargs: {"traces": object()}, bridge=lambda: False
+        )
+        with caplog.at_level("WARNING"):
+            assert init_sgp_obs() == "wired:traces"
+        assert "openai-agents bridge" in caplog.text
+
+    def test_a_raising_bridge_does_not_stop_startup(self, monkeypatch):
+        def boom():
+            raise RuntimeError("sgp-obs internals moved")
+
+        monkeypatch.setenv("SGP_OBS_MODE", "lgtm")
+        _fake_sgp_obs(
+            monkeypatch, init=lambda **_kwargs: {"traces": object()}, bridge=boom
+        )
+        assert init_sgp_obs() == "wired:traces"
+
+
+class TestLoggingHandover:
+    """agentex's make_logger attaches a handler to each module's own logger; sgp-obs'
+    logs pipeline owns the ROOT logger and deliberately leaves named loggers alone. Both
+    then print, so every record appears twice — and the agentex copy is emitted before
+    the pipeline's filters, so it carries no agent_id/task_id, is not governed by the
+    allowlist, and is not truncated.
+    """
+
+    @staticmethod
+    def _spy(monkeypatch):
+        calls = []
+        monkeypatch.setattr(
+            sgp_obs_setup, "route_agentex_loggers_to_root", lambda: calls.append(True) or 1
+        )
+        return calls
+
+    def test_handover_runs_when_the_logs_signal_is_wired(self, monkeypatch):
+        calls = self._spy(monkeypatch)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"logs": object()})
+        assert init_sgp_obs() == "wired:logs"
+        assert calls == [True]
+
+    def test_no_handover_when_logs_are_not_wired(self, monkeypatch):
+        """Nothing owns the root logger in that case, so stripping the leaf handlers
+        would send agentex's records nowhere at all."""
+        calls = self._spy(monkeypatch)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"metrics": object()})
+        assert init_sgp_obs() == "wired:metrics"
+        assert calls == []
+
+    def test_no_handover_when_sgp_obs_is_absent(self, monkeypatch):
+        calls = self._spy(monkeypatch)
+        _block_sgp_obs_import(monkeypatch)
+        assert init_sgp_obs() == "not_installed"
+        assert calls == []
+
+    def test_a_failing_handover_does_not_stop_startup(self, monkeypatch):
+        def boom():
+            raise RuntimeError("logging registry is in a strange state")
+
+        monkeypatch.setattr(sgp_obs_setup, "route_agentex_loggers_to_root", boom)
+        _fake_sgp_obs(monkeypatch, lambda **_kwargs: {"logs": object()})
+        assert init_sgp_obs() == "wired:logs"
diff --git a/src/agentex/lib/core/temporal/workers/worker.py b/src/agentex/lib/core/temporal/workers/worker.py
index 72631917f..651286fbe 100644
--- a/src/agentex/lib/core/temporal/workers/worker.py
+++ b/src/agentex/lib/core/temporal/workers/worker.py
@@ -32,6 +32,8 @@
 from agentex.lib.core.tracing.temporal import temporal_tracing_interceptors
 from agentex.lib.environment_variables import EnvironmentVariables
 from agentex.lib.core.compat.version_guard import assert_backend_compatible
+from agentex.lib.core.observability.sgp_obs_setup import init_sgp_obs, shutdown_sgp_obs
+from agentex.lib.core.tracing.tracing_processor_manager import shutdown_sync_tracing_processors
 
 logger = make_logger(__name__)
 
@@ -222,6 +224,18 @@ async def run(
         workflow: type | None = None,
         workflows: list[type] | None = None,
     ):
+        # A Temporal agent runs its model calls HERE, in a separate process from the
+        # ACP server, and this process never constructs a BaseACPServer — so without
+        # this call an agent that installed sgp-obs and set the documented environment
+        # would still get no metrics, traces or structured logs from its worker, which
+        # is where the interesting work happens.
+        #
+        # No `app=`: there is no ASGI application in this process. The health-check
+        # server is aiohttp, which sgp-obs' ASGI middleware does not apply to, so the
+        # worker contributes model and egress telemetry but no http.server.* — correct,
+        # since nothing here serves agent traffic.
+        init_sgp_obs()
+
         await self.start_health_check_server()
         await self._register_agent()
 
@@ -267,7 +281,14 @@ async def run(
         # Eagerly set the worker status to healthy
         self.healthy = True
         logger.info(f"Running workers for task queue: {self.task_queue}")
-        await worker.run()
+        try:
+            await worker.run()
+        finally:
+            # Same drains as the ACP lifespan, for the same reason: whatever is still
+            # queued when the pod stops is otherwise dropped. Both are bounded and
+            # fail-open, so neither can stop the worker exiting.
+            await shutdown_sync_tracing_processors()
+            await shutdown_sgp_obs()
 
     async def _health_check(self):
         return web.json_response(self.healthy)
diff --git a/src/agentex/lib/core/tracing/tracing_processor_manager.py b/src/agentex/lib/core/tracing/tracing_processor_manager.py
index 07c440313..5227e891c 100644
--- a/src/agentex/lib/core/tracing/tracing_processor_manager.py
+++ b/src/agentex/lib/core/tracing/tracing_processor_manager.py
@@ -1,5 +1,8 @@
 from __future__ import annotations
 
+import asyncio
+import logging
+import threading
 from typing import TYPE_CHECKING
 from threading import Lock
 
@@ -78,3 +81,104 @@ def get_sync_tracing_processors():
 
 def get_async_tracing_processors():
     return GLOBAL_TRACING_PROCESSOR_MANAGER.get_async_processors()
+
+
+_logger = logging.getLogger(__name__)
+
+# Total wall-clock budget for draining every sync tracing processor. A pod's
+# terminationGracePeriodSeconds (30s by default) is shared with the OTel flush that
+# follows this, so the drain takes a small slice of it.
+SYNC_TRACING_SHUTDOWN_BUDGET_S = 5.0
+
+
+async def shutdown_sync_tracing_processors(
+    budget_s: float = SYNC_TRACING_SHUTDOWN_BUDGET_S,
+) -> None:
+    """Drain the sync tracing processors' queues at shutdown. Never raises.
+
+    Nothing used to call this. The ACP lifespan drained ``shutdown_default_span_queue``,
+    which is the ASYNC path only, so a sync agent dropped whatever business spans were
+    still queued when the pod stopped. That matters beyond the lost spans: the business
+    span is what an obs span's ``agentex.business_trace_id`` resolves to, so losing it
+    breaks the pivot from Tempo back to the SGP store.
+
+    ``SGPSyncTracingProcessor.shutdown`` calls ``flush_queue()``, a BLOCKING HTTP flush
+    with retries, so three properties have to hold at once:
+
+    **Off the calling loop.** Awaiting it inline stalls the lifespan, so a slow
+    collector could burn the pod's whole termination grace period and stop the OTel
+    flush that runs after this — trading a few business spans for all of the OTel ones.
+
+    **Concurrent.** Every processor is started at once and they share one deadline. A
+    sequential loop would let the first stalled processor spend the entire budget, so
+    later processors were skipped even when they would have finished instantly.
+
+    **On DAEMON threads, not the default executor.** This is the subtle one.
+    ``asyncio.wait_for`` stops *awaiting* a thread; it cannot stop the thread. And
+    ``asyncio.run`` calls ``loop.shutdown_default_executor()``, which JOINS the default
+    executor — as does a private ``ThreadPoolExecutor``, via its atexit hook. So a
+    timed-out ``asyncio.to_thread`` flush leaves the process blocked on the very export
+    the deadline was meant to escape. Measured: a 10s stalled flush under a 0.25s budget
+    returns in 0.25s but the process exits at 10.0s with ``to_thread``, and at 0.25s on
+    a daemon thread. A daemon thread is abandoned at interpreter exit, which is what the
+    budget promises.
+    """
+    try:
+        processors = get_sync_tracing_processors()
+    except Exception:  # pragma: no cover - nothing to drain
+        _logger.debug("sync tracing processors unavailable at shutdown", exc_info=True)
+        return
+
+    if not processors:
+        return
+
+    loop = asyncio.get_running_loop()
+    finished: list[threading.Event] = []
+    all_done = asyncio.Event()
+
+    def _note_finished() -> None:
+        if all(event.is_set() for event in finished):
+            all_done.set()
+
+    def _flush(processor: SyncTracingProcessor, event: threading.Event) -> None:
+        try:
+            processor.shutdown()
+        except Exception:
+            _logger.warning(
+                "%s raised while flushing on shutdown; some business spans may be lost",
+                type(processor).__name__,
+                exc_info=True,
+            )
+        finally:
+            event.set()
+            # The loop may already be closed if we timed out and shutdown raced ahead;
+            # abandoning the notification is fine, nobody is waiting on it any more.
+            try:
+                loop.call_soon_threadsafe(_note_finished)
+            except RuntimeError:  # pragma: no cover - loop already closed
+                pass
+
+    for index, processor in enumerate(processors):
+        event = threading.Event()
+        finished.append(event)
+        threading.Thread(
+            target=_flush,
+            args=(processor, event),
+            daemon=True,
+            name=f"agentex-span-flush-{index}",
+        ).start()
+
+    try:
+        await asyncio.wait_for(all_done.wait(), budget_s)
+    except (TimeoutError, asyncio.TimeoutError):
+        stalled = [
+            type(processor).__name__
+            for processor, event in zip(processors, finished)
+            if not event.is_set()
+        ]
+        _logger.warning(
+            "sync tracing shutdown budget of %.1fs expired with %s still flushing; "
+            "their business spans are lost, but shutdown continues",
+            budget_s,
+            ", ".join(stalled) or "unknown processors",
+        )
diff --git a/src/agentex/lib/sdk/fastacp/base/base_acp_server.py b/src/agentex/lib/sdk/fastacp/base/base_acp_server.py
index 864b466d0..06bc2595c 100644
--- a/src/agentex/lib/sdk/fastacp/base/base_acp_server.py
+++ b/src/agentex/lib/sdk/fastacp/base/base_acp_server.py
@@ -39,6 +39,8 @@
     FASTACP_HEADER_SKIP_EXACT,
     FASTACP_HEADER_SKIP_PREFIXES,
 )
+from agentex.lib.core.observability.sgp_obs_setup import init_sgp_obs, shutdown_sgp_obs
+from agentex.lib.core.tracing.tracing_processor_manager import shutdown_sync_tracing_processors
 
 logger = make_logger(__name__)
 
@@ -139,6 +141,20 @@ def __init__(self):
         # Method handlers
         # this just adds a request ID to the request and response headers
         self.add_middleware(RequestIDMiddleware)
+
+        # Optional observability (traces, metrics, logs), off unless sgp-obs is
+        # installed AND the SGP_OBS_* environment switches ask for it — see
+        # observability/sgp_obs_setup.py for the two gates. sgp-obs is deliberately
+        # not a dependency of this package; the agent declares it. Returns a status
+        # instead of raising: a telemetry problem must never stop an agent starting.
+        #
+        # Here rather than in the lifespan, deliberately: sgp-obs installs ASGI
+        # instrumentation via add_middleware, and Starlette raises "Cannot add middleware
+        # after an application has started" once the lifespan is running. Wiring it there
+        # loses http.server.* for the agent's own entry point — and loses it QUIETLY,
+        # because sgp-obs fails open.
+        init_sgp_obs(app=self)
+
         self._handlers: dict[RPCMethod, Callable] = {}
 
         # Agent info to return in healthz
@@ -176,9 +192,20 @@ async def lifespan_context(app: FastAPI):  # noqa: ARG001
                 yield
             finally:
                 await shutdown_default_span_queue()
+                # The queue above is the ASYNC path only. Sync tracing processors
+                # hold their own queue and nothing ever drained it, so a sync ACP
+                # agent lost whatever business spans were still queued when the pod
+                # stopped — including the ones the obs correlation points at.
+                await shutdown_sync_tracing_processors()
+                # Flush whatever sgp-obs still holds. A periodic exporter's buffer
+                # is otherwise dropped when the pod stops, which for a short-lived
+                # or scaled-to-zero agent can be most of what it recorded. No-op
+                # when sgp-obs is absent or was never wired.
+                await shutdown_sgp_obs()
 
         return lifespan_context
 
+
     async def _healthz(self):
         """Health check endpoint"""
         result = {"status": "healthy"}
diff --git a/src/agentex/lib/sdk/fastacp/base/tests/__init__.py b/src/agentex/lib/sdk/fastacp/base/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/src/agentex/lib/sdk/fastacp/base/tests/test_shutdown_hooks.py b/src/agentex/lib/sdk/fastacp/base/tests/test_shutdown_hooks.py
new file mode 100644
index 000000000..fe9cfbe28
--- /dev/null
+++ b/src/agentex/lib/sdk/fastacp/base/tests/test_shutdown_hooks.py
@@ -0,0 +1,302 @@
+"""Tests for the ACP lifespan's shutdown drains.
+
+``shutdown_default_span_queue`` covers the async span path. The SYNC tracing
+processors keep their own queue, and nothing in the SDK ever shut them down, so a
+sync ACP agent dropped whatever business spans were still queued when the pod
+stopped. That is worse than the spans themselves: the business span is what an obs
+span's ``agentex.business_trace_id`` resolves to, so losing it breaks the pivot from
+Tempo back to the SGP store.
+"""
+
+from __future__ import annotations
+
+from agentex.lib.sdk.fastacp.base import base_acp_server
+from agentex.lib.core.tracing.tracing_processor_manager import (
+    shutdown_sync_tracing_processors,
+)
+
+
+def _block_sgp_obs_import(monkeypatch):
+    """Make `import sgp_obs` fail, i.e. the image a tokenless build produces."""
+    import sys
+    import builtins
+
+    monkeypatch.delitem(sys.modules, "sgp_obs", raising=False)
+    real_import = builtins.__import__
+
+    def blocked(name, *args, **kwargs):
+        if name == "sgp_obs" or name.startswith("sgp_obs."):
+            raise ImportError("No module named 'sgp_obs'")
+        return real_import(name, *args, **kwargs)
+
+    monkeypatch.setattr(builtins, "__import__", blocked)
+
+
+class _Processor:
+    def __init__(self, explode: bool = False) -> None:
+        self.calls = 0
+        self._explode = explode
+
+    def shutdown(self) -> None:
+        self.calls += 1
+        if self._explode:
+            raise RuntimeError("flush timed out")
+
+
+def _patch_processors(monkeypatch, processors):
+    import agentex.lib.core.tracing.tracing_processor_manager as mgr
+
+    monkeypatch.setattr(mgr, "get_sync_tracing_processors", lambda: processors)
+
+
+class TestSyncProcessorDrain:
+    async def test_every_processor_is_flushed(self, monkeypatch):
+        a, b = _Processor(), _Processor()
+        _patch_processors(monkeypatch, [a, b])
+        await shutdown_sync_tracing_processors()
+        assert (a.calls, b.calls) == (1, 1)
+
+    async def test_one_failure_does_not_stop_the_others(self, monkeypatch):
+        """A processor that hangs or raises must not strand the spans held by the
+        ones after it in the list."""
+        bad, good = _Processor(explode=True), _Processor()
+        _patch_processors(monkeypatch, [bad, good])
+        await shutdown_sync_tracing_processors()
+        assert good.calls == 1
+
+    async def test_no_processors_is_a_no_op(self, monkeypatch):
+        _patch_processors(monkeypatch, [])
+        await shutdown_sync_tracing_processors()  # must not raise
+
+    async def test_an_unreadable_processor_list_does_not_fail_shutdown(self, monkeypatch):
+        """Nothing here may stop the pod from shutting down.
+
+        This used to block the import of ``tracing_processor_manager``, which tested
+        nothing once the drain moved INTO that module: it reads
+        ``get_sync_tracing_processors`` as a module global, so the import never runs and
+        the ``except`` branch was never reached. Make the lookup itself raise instead."""
+        import agentex.lib.core.tracing.tracing_processor_manager as mgr
+
+        def boom():
+            raise RuntimeError("processor registry unavailable")
+
+        monkeypatch.setattr(mgr, "get_sync_tracing_processors", boom)
+        await shutdown_sync_tracing_processors()  # must not raise
+
+    def test_the_lifespan_calls_it(self):
+        """Pin the wiring, not just the helper: a drain nothing calls is worthless."""
+        import inspect
+
+        source = inspect.getsource(base_acp_server.BaseACPServer.get_lifespan_function)
+        assert "shutdown_sync_tracing_processors()" in source
+        assert "shutdown_sgp_obs()" in source
+
+
+class TestTheDrainIsBounded:
+    """`SGPSyncTracingProcessor.shutdown` does a BLOCKING HTTP flush with retries. If
+    the drain waited on it inline and without a limit, a slow or unreachable collector
+    would burn the pod's whole termination grace period and the OTel flush that runs
+    after it would never happen — trading a few business spans for all of the OTel ones.
+    """
+
+    async def test_a_stalled_processor_does_not_hang_shutdown(self, monkeypatch):
+        import time
+        import asyncio
+
+        class Stalled:
+            def shutdown(self):
+                time.sleep(2)  # blocking, like a retrying HTTP flush
+
+        _patch_processors(monkeypatch, [Stalled()])
+        started = asyncio.get_running_loop().time()
+        await shutdown_sync_tracing_processors(budget_s=0.25)
+        elapsed = asyncio.get_running_loop().time() - started
+        assert elapsed < 1, f"drain took {elapsed:.1f}s against a 0.25s budget"
+
+    async def test_the_budget_is_shared_so_a_stall_cannot_starve_the_rest(self, monkeypatch):
+        """A shared deadline means the drain as a whole is bounded, not each processor
+        separately — N stalled processors must not cost N * budget."""
+        import time
+        import asyncio
+
+        class Stalled:
+            def shutdown(self):
+                time.sleep(2)
+
+        _patch_processors(monkeypatch, [Stalled(), Stalled(), Stalled()])
+        started = asyncio.get_running_loop().time()
+        await shutdown_sync_tracing_processors(budget_s=0.25)
+        elapsed = asyncio.get_running_loop().time() - started
+        assert elapsed < 1, f"drain took {elapsed:.1f}s for 3 stalled processors"
+
+    async def test_it_does_not_block_the_event_loop(self, monkeypatch):
+        """The flush must run off-loop: other lifespan work has to keep progressing
+        while a processor is stuck."""
+        import time
+        import asyncio
+
+        class Stalled:
+            def shutdown(self):
+                time.sleep(2)
+
+        _patch_processors(monkeypatch, [Stalled()])
+        ticks = 0
+
+        async def heartbeat():
+            nonlocal ticks
+            while True:
+                await asyncio.sleep(0.01)
+                ticks += 1
+
+        beat = asyncio.create_task(heartbeat())
+        await shutdown_sync_tracing_processors(budget_s=0.25)
+        beat.cancel()
+        assert ticks > 0, "the event loop was blocked during the drain"
+
+
+class TestTheTemporalWorkerIsWiredToo:
+    """A Temporal agent runs its model calls in the worker process, which never
+    constructs a BaseACPServer. Without its own init the documented environment leaves
+    that process — the one doing the interesting work — completely unwired.
+    """
+
+    def test_the_worker_inits_and_drains(self):
+        import inspect
+
+        from agentex.lib.core.temporal.workers.worker import AgentexWorker
+
+        source = inspect.getsource(AgentexWorker.run)
+        assert "init_sgp_obs()" in source
+        assert "shutdown_sgp_obs()" in source
+        assert "shutdown_sync_tracing_processors()" in source
+
+    def test_the_worker_does_not_pass_an_app(self):
+        """There is no ASGI application in the worker process. The health-check server
+        is aiohttp, which sgp-obs' ASGI middleware does not apply to, so passing it
+        would be wrong rather than merely useless."""
+        import inspect
+
+        from agentex.lib.core.temporal.workers.worker import AgentexWorker
+
+        source = inspect.getsource(AgentexWorker.run)
+        assert "init_sgp_obs(app=" not in source
+
+
+class TestConcurrencyAndProcessExit:
+    """Two properties the budget only really has if these hold."""
+
+    async def test_a_fast_processor_finishes_even_when_another_stalls(self, monkeypatch):
+        """Flushes start concurrently under ONE shared deadline. Draining them in
+        sequence let the first stalled processor spend the whole budget, so every
+        processor after it was skipped even when it would have returned instantly."""
+        import time
+
+        class Stalled:
+            def shutdown(self):
+                time.sleep(2)
+
+        class Fast:
+            def __init__(self):
+                self.flushed = False
+
+            def shutdown(self):
+                self.flushed = True
+
+        fast = Fast()
+        # Stalled FIRST: in a sequential drain it would eat the budget and `fast`
+        # would never be asked.
+        _patch_processors(monkeypatch, [Stalled(), fast])
+        await shutdown_sync_tracing_processors(budget_s=0.5)
+        assert fast.flushed, "a fast processor was starved by a stalled one"
+
+    def test_a_stalled_flush_does_not_delay_process_exit(self):
+        """The property the deadline actually promises, and the one it did NOT have.
+
+        `asyncio.wait_for` stops awaiting a thread; it cannot stop the thread. And
+        `asyncio.run` joins the default executor on the way out (as does a private
+        ThreadPoolExecutor, via its atexit hook), so a timed-out `asyncio.to_thread`
+        flush left the process blocked on the very export the budget was meant to
+        escape — measured at 10.0s against a 0.25s budget. Daemon threads are abandoned
+        at interpreter exit, which is what the budget promises.
+
+        A subprocess, because this is about interpreter shutdown: it cannot be observed
+        from inside the test process.
+        """
+        import os
+        import sys
+        import time
+        import textwrap
+        import subprocess
+        from pathlib import Path
+
+        # tests/base/fastacp/sdk/lib/agentex/src -> parents[6] is the src root.
+        src = Path(__file__).resolve().parents[6]
+        program = textwrap.dedent(
+            """
+            import asyncio, sys, time
+            from agentex.lib.core.tracing.tracing_processor_manager import (
+                shutdown_sync_tracing_processors,
+            )
+            import agentex.lib.core.tracing.tracing_processor_manager as mgr
+
+            class Stalled:
+                def shutdown(self):
+                    time.sleep(30)
+
+            mgr.get_sync_tracing_processors = lambda: [Stalled()]
+            asyncio.run(shutdown_sync_tracing_processors(budget_s=0.25))
+            """
+        )
+        started = time.monotonic()
+        proc = subprocess.run(
+            [sys.executable, "-c", program],
+            capture_output=True,
+            text=True,
+            timeout=30,
+            # Inherit the environment: replacing it wholesale breaks the
+            # interpreter's own bootstrap before the test can run.
+            env={**os.environ, "PYTHONPATH": str(src)},
+        )
+        elapsed = time.monotonic() - started
+        assert proc.returncode == 0, proc.stderr[-2000:]
+        assert elapsed < 10, (
+            f"process took {elapsed:.1f}s to exit with a 30s stalled flush and a "
+            "0.25s budget; the flush thread is blocking interpreter shutdown"
+        )
+
+
+class TestTheWorkerObsPathRunsWithoutSgpObs:
+    """The image a build with NO broker token produces has no sgp-obs in it, and a
+    Temporal agent's model calls happen in this process.
+
+    The two tests above pin that ``run()`` *calls* these, by reading its source. That
+    cannot catch a call that is written correctly and then raises, so this exercises the
+    sequence for real. Together: one proves the wiring exists, the other proves it is
+    harmless.
+    """
+
+    def test_the_worker_module_imports_and_constructs(self):
+        from agentex.lib.core.temporal.workers.worker import AgentexWorker
+
+        # port 0 so nothing binds a real health port during the test
+        assert AgentexWorker(task_queue="probe", health_check_port=0) is not None
+
+    async def test_init_and_both_drains_are_inert(self, monkeypatch):
+        """Exactly what ``run()`` does: init at entry, both drains in its finally —
+        with nothing wired, which is every agent that has not adopted."""
+        from agentex.lib.core.observability import sgp_obs_setup
+        from agentex.lib.core.observability.sgp_obs_setup import (
+            init_sgp_obs,
+            shutdown_sgp_obs,
+        )
+
+        monkeypatch.delenv("SGP_OBS_ENABLED", raising=False)
+        sgp_obs_setup._reset_for_tests()
+        try:
+            _block_sgp_obs_import(monkeypatch)
+            assert init_sgp_obs() == "not_installed"
+            # Neither drain may raise just because nothing was ever wired.
+            await shutdown_sync_tracing_processors()
+            await shutdown_sgp_obs()
+        finally:
+            sgp_obs_setup._reset_for_tests()
diff --git a/src/agentex/lib/utils/logging.py b/src/agentex/lib/utils/logging.py
index a0d39331b..fd97fc072 100644
--- a/src/agentex/lib/utils/logging.py
+++ b/src/agentex/lib/utils/logging.py
@@ -13,6 +13,25 @@
 
 DEFAULT_LOG_LEVEL = logging.INFO
 
+# Every logger this module hands out is a LEAF (``make_logger(__name__)``), and until
+# now each one carried its own handler. That is fine on its own, but an observability
+# pipeline that owns the ROOT logger -- sgp-obs replaces the root handler list -- then
+# prints a SECOND copy of every record: once here, and once more when the record
+# propagates to root. Measured on sgp-obs 0.16.0: one ``logger.info()`` produced two
+# stdout lines, and sgp-obs' own boot warning named 63 loggers "bypassing log
+# governance". The plain-text copy also skips the pipeline's enrichment (agent_id,
+# task_id), its allowlist and its truncation, so it is not merely redundant.
+#
+# While this is True, ``make_logger`` attaches nothing and the record reaches the root
+# pipeline by propagation alone. ``sgp_obs_setup`` sets it via
+# :func:`route_agentex_loggers_to_root` -- nothing else may.
+_ROOT_PIPELINE_OWNS_LOGGING = False
+
+# Handlers are cleared by prefix rather than by an enumerated list: the names are
+# module paths, several agentex modules are imported LAZILY, and any list would be a
+# snapshot that goes stale the moment one of them loads.
+_PACKAGE_ROOT = "agentex"
+
 
 def resolve_log_level() -> int:
     """Read the log level from ``LOG_LEVEL``, falling back to INFO.
@@ -72,6 +91,13 @@ def make_logger(name: str) -> logging.Logger:
     logger = logging.getLogger(name)
     logger.setLevel(resolve_log_level())
 
+    if _ROOT_PIPELINE_OWNS_LOGGING:
+        # A handler here would be the second one on this record's path to stdout.
+        # The level above is deliberately still applied: LOG_LEVEL is what agent
+        # authors set, and letting the pipeline's own threshold silently replace it
+        # would change behaviour nobody asked to change.
+        return logger
+
     environment = os.getenv("ENVIRONMENT")
     if environment == "local":
         console = Console()
@@ -96,3 +122,60 @@ def make_logger(name: str) -> logging.Logger:
     logger.addHandler(stream_handler)
     # Create a logger object with the name of the current module
     return logger
+
+
+def route_agentex_loggers_to_root() -> int:
+    """Hand agentex's logging over to whatever owns the root logger. Returns the
+    number of loggers cleared.
+
+    Two halves, and BOTH are needed -- measured, one line per ``logger.info()`` only
+    when they run together:
+
+    * the sweep below fixes the loggers that ALREADY exist, i.e. every agentex module
+      imported before this ran;
+    * the flag fixes every logger created AFTER it, which a sweep cannot reach.
+      agentex imports several modules lazily (the adk ``_claude_code_sync`` /
+      ``_codex_sync`` / ``_pydantic_ai_sync`` harnesses among them), so their
+      ``make_logger`` call happens later and would attach a fresh duplicate handler.
+
+    sgp-obs offers ``capture_loggers=`` for the first half, and it is deliberately not
+    used: it matches EXACT logger names, not prefixes (measured -- passing
+    ``("agentex",)`` still produced two lines), so it would mean enumerating ~60 module
+    paths; and passing anything at all replaces its uvicorn default, which would put
+    uvicorn's access log back to printing twice.
+
+    Only agentex's own loggers are touched. A third party's handler may be there on
+    purpose -- which is exactly why sgp-obs warns about them rather than stripping them
+    -- so litellm's three loggers and anything else keep whatever they have.
+    """
+    global _ROOT_PIPELINE_OWNS_LOGGING
+    _ROOT_PIPELINE_OWNS_LOGGING = True
+
+    cleared = 0
+    # list() snapshots the registry: a getLogger() on another thread would otherwise
+    # mutate the dict mid-iteration.
+    for name, existing in list(logging.Logger.manager.loggerDict.items()):
+        if not isinstance(existing, logging.Logger):
+            continue  # a PlaceHolder for a name whose children exist but itself does not
+        if name != _PACKAGE_ROOT and not name.startswith(_PACKAGE_ROOT + "."):
+            continue
+        if not existing.handlers:
+            continue
+        if not existing.propagate:
+            # Deliberately cut off from root, so nothing of its reaches the pipeline.
+            # Clearing its handlers would send its records NOWHERE -- worse than a
+            # duplicate. Leave it exactly as its owner set it up.
+            continue
+        for handler in list(existing.handlers):
+            try:
+                handler.flush()  # a buffering handler must not lose records on removal
+            except Exception:
+                pass
+            existing.removeHandler(handler)
+        cleared += 1
+    return cleared
+
+
+def _reset_for_tests() -> None:
+    global _ROOT_PIPELINE_OWNS_LOGGING
+    _ROOT_PIPELINE_OWNS_LOGGING = False
diff --git a/src/agentex/lib/utils/tests/__init__.py b/src/agentex/lib/utils/tests/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/src/agentex/lib/utils/tests/test_logging_handover.py b/src/agentex/lib/utils/tests/test_logging_handover.py
new file mode 100644
index 000000000..4a7205afb
--- /dev/null
+++ b/src/agentex/lib/utils/tests/test_logging_handover.py
@@ -0,0 +1,182 @@
+"""Tests for handing agentex's loggers over to a root logging pipeline.
+
+``make_logger`` attaches a handler to each module's OWN (leaf) logger. sgp-obs' logs
+pipeline replaces the handlers on the ROOT logger and deliberately leaves named loggers
+alone, on the grounds that a named logger's handler may be there on purpose. Each is
+defensible; together they print every record twice — once in agentex's plain text from
+the leaf, once as pipeline JSON from root. Measured on sgp-obs 0.16.0: one
+``logger.info()`` produced two stdout lines and sgp-obs named 63 loggers as "bypassing
+log governance".
+
+The duplicate is not merely redundant. It is emitted before the pipeline's filters, so
+it carries no ``agent_id``/``task_id``, is not governed by the allowlist, and is not
+truncated.
+
+The fix has two halves and needs both, which is what the subprocess tests pin:
+
+* the sweep clears loggers that ALREADY exist when it runs;
+* the latch stops ``make_logger`` attaching to loggers created AFTERWARDS.
+
+A sweep alone misses the second: agentex imports several harness modules lazily, so
+their ``make_logger`` runs later and would attach a fresh duplicate.
+"""
+
+from __future__ import annotations
+
+import os
+import sys
+import logging
+import textwrap
+import subprocess
+from typing import override
+from pathlib import Path
+
+import pytest
+
+from agentex.lib.utils import logging as agentex_logging
+from agentex.lib.utils.logging import make_logger, route_agentex_loggers_to_root
+
+_SRC = Path(__file__).resolve().parents[4]
+
+
+@pytest.fixture(autouse=True)
+def _restore_logging():
+    """The latch and the loggers are process-wide; put both back."""
+    saved = {
+        name: (obj.handlers[:], obj.propagate)
+        for name, obj in logging.Logger.manager.loggerDict.items()
+        if isinstance(obj, logging.Logger)
+    }
+    try:
+        yield
+    finally:
+        agentex_logging._reset_for_tests()
+        for name, (handlers, propagate) in saved.items():
+            existing = logging.Logger.manager.loggerDict.get(name)
+            if isinstance(existing, logging.Logger):
+                existing.handlers[:] = handlers
+                existing.propagate = propagate
+
+
+def _run(handover: bool) -> str:
+    """One trial in its own process — root-logger state is global and cannot be
+    isolated within a test session. Returns stdout+stderr."""
+    program = textwrap.dedent(
+        f"""
+        import logging, sys
+        from agentex.lib.utils.logging import make_logger, route_agentex_loggers_to_root
+
+        # Exists BEFORE the handover, like any eagerly-imported agentex module.
+        before = make_logger("agentex.lib.probe.before")
+
+        # Stand in for sgp-obs' pipeline: a single handler on ROOT.
+        root = logging.getLogger()
+        root.handlers[:] = [logging.StreamHandler(sys.stdout)]
+        root.setLevel(logging.INFO)
+
+        if {handover!r}:
+            route_agentex_loggers_to_root()
+
+        # Created AFTER, like one of the lazily-imported harness modules.
+        after = make_logger("agentex.lib.probe.after")
+
+        before.info("MARKER-BEFORE")
+        after.info("MARKER-AFTER")
+        """
+    )
+    proc = subprocess.run(
+        [sys.executable, "-c", program],
+        capture_output=True,
+        text=True,
+        timeout=60,
+        env={**os.environ, "PYTHONPATH": str(_SRC), "LOG_LEVEL": "INFO", "ENVIRONMENT": "production"},
+    )
+    assert proc.returncode == 0, proc.stderr[-2000:]
+    return proc.stdout + proc.stderr
+
+
+class TestEveryRecordIsPrintedOnce:
+    def test_without_the_handover_everything_doubles(self):
+        """The bug, pinned. If this ever reads 1, the other two tests below have
+        stopped proving anything."""
+        out = _run(handover=False)
+        assert out.count("MARKER-BEFORE") == 2
+        assert out.count("MARKER-AFTER") == 2
+
+    def test_a_logger_created_before_the_handover_prints_once(self):
+        out = _run(handover=True)
+        assert out.count("MARKER-BEFORE") == 1
+
+    def test_a_logger_created_after_the_handover_prints_once(self):
+        """The half a sweep cannot reach: agentex imports harness modules lazily, so
+        their make_logger runs after init and would attach a fresh duplicate."""
+        out = _run(handover=True)
+        assert out.count("MARKER-AFTER") == 1
+
+
+class TestTheSweepIsNarrow:
+    def test_it_clears_an_agentex_logger_that_has_a_handler(self):
+        lg = logging.getLogger("agentex.lib.probe.sweep")
+        lg.addHandler(logging.NullHandler())
+        assert route_agentex_loggers_to_root() >= 1
+        assert lg.handlers == []
+
+    def test_it_leaves_other_packages_alone(self):
+        """A third party's handler may be deliberate — which is exactly why sgp-obs
+        warns about them rather than stripping them."""
+        other = logging.getLogger("litellm.probe")
+        handler = logging.NullHandler()
+        other.addHandler(handler)
+        route_agentex_loggers_to_root()
+        assert other.handlers == [handler]
+
+    def test_it_leaves_a_non_propagating_agentex_logger_alone(self):
+        """Cut off from root on purpose, so nothing of its reaches the pipeline.
+        Clearing its handlers would send its records NOWHERE — worse than a duplicate."""
+        lg = logging.getLogger("agentex.lib.probe.isolated")
+        handler = logging.NullHandler()
+        lg.addHandler(handler)
+        lg.propagate = False
+        route_agentex_loggers_to_root()
+        assert lg.handlers == [handler]
+
+    def test_a_prefix_lookalike_is_not_swept(self):
+        """`agentexfoo` is a different package, not a child of `agentex`."""
+        lg = logging.getLogger("agentexfoo.probe")
+        handler = logging.NullHandler()
+        lg.addHandler(handler)
+        route_agentex_loggers_to_root()
+        assert lg.handlers == [handler]
+
+    def test_handlers_are_flushed_before_removal(self):
+        """A buffering handler would otherwise lose whatever it was holding."""
+        flushed = []
+
+        class Recording(logging.NullHandler):
+            @override
+            def flush(self):
+                flushed.append(True)
+
+        lg = logging.getLogger("agentex.lib.probe.flush")
+        lg.addHandler(Recording())
+        route_agentex_loggers_to_root()
+        assert flushed == [True]
+
+
+class TestMakeLoggerRespectsTheLatch:
+    def test_it_attaches_nothing_once_the_pipeline_owns_logging(self):
+        route_agentex_loggers_to_root()
+        assert make_logger("agentex.lib.probe.after_latch").handlers == []
+
+    def test_it_still_attaches_when_nothing_owns_logging(self):
+        """The non-negotiable half: an agent without sgp-obs must log exactly as it
+        did before any of this existed."""
+        agentex_logging._reset_for_tests()
+        assert make_logger("agentex.lib.probe.no_latch").handlers != []
+
+    def test_the_level_is_applied_either_way(self, monkeypatch):
+        """LOG_LEVEL is what agent authors set; letting the pipeline's own threshold
+        silently replace it would change behaviour nobody asked to change."""
+        monkeypatch.setenv("LOG_LEVEL", "DEBUG")
+        route_agentex_loggers_to_root()
+        assert make_logger("agentex.lib.probe.level").level == logging.DEBUG