diff --git a/.gitignore b/.gitignore
index a7e2e29..11d9d52 100644
--- a/.gitignore
+++ b/.gitignore
@@ -40,3 +40,8 @@
 # Ignore vim swapfiles
 *.swo
 *.swp
+
+# Terraform
+.terraform*
+*.hcl
+*.tfstate
diff --git a/Dockerfile b/Dockerfile
index 83700bd..d28024d 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,7 +1,7 @@
 FROM phusion/passenger-ruby33 AS production
 
 # Set correct environment variables.
-ENV HOME /root
+ENV HOME=/root
 
 # Use baseimage-docker's init process.
 RUN mkdir -p /etc/my_init.d
@@ -27,7 +27,8 @@ WORKDIR /home/app/scsbuster
 COPY Gemfile /home/app/scsbuster
 COPY Gemfile.lock /home/app/scsbuster
 RUN gem update --system
-RUN bundle install --without test development
+RUN bundle config set without 'test development'
+RUN bundle install
 RUN RAILS_ENV=production bundle exec rake assets:precompile
 RUN chown -R app:app /home/app/scsbuster/tmp/cache
 
diff --git a/README.md b/README.md
index f14a3af..7779bb4 100644
--- a/README.md
+++ b/README.md
@@ -57,3 +57,13 @@ Our branches (in order of stability are):
 Merging `feature_branch` => `qa` automatically deploys to the qa environment.
 Merging `qa` => `production` automatically deploys to the production environment.
 After a release, please backmerge production to qa with a PR.
+
+### Terraform
+
+Most AWS infrastructure for SCSBuster is managed by the DevOps team through their Terraform configurations and state.
+
+This repository contains a limited Terraform configuration used to manage application-specific monitoring resources owned by the Research Catalog team,
+found in the `terraform/` directory.
+
+Changes to application alarms should be made through this Terraform configuration. If changes to other core AWS infrastructure (ECS configuration,
+load balancing, etc.) are necessary, DevOps must update their Terraform.
diff --git a/terraform/base/alarms.tf b/terraform/base/alarms.tf
new file mode 100644
index 0000000..f835750
--- /dev/null
+++ b/terraform/base/alarms.tf
@@ -0,0 +1,6 @@
+/* 
+DevOps covers these metric alarms for the production and qa environments:
+scsbuster-{env}-tf_cpu
+scsbuster-{env}-tf_memory
+scsbuster-{env}-tf_alb500_scale_up
+*/
diff --git a/terraform/base/resources.tf b/terraform/base/resources.tf
new file mode 100644
index 0000000..6940b6d
--- /dev/null
+++ b/terraform/base/resources.tf
@@ -0,0 +1,18 @@
+locals {
+  tags = {
+    Project      = "SCSBuster"
+    BusinessUnit = "LSP"
+    Environment  = var.environment
+  }
+}
+
+variable "environment" {
+  type = string
+  default = "qa"
+  description = "The name of the environment (qa, production). This controls the env vars loaded."
+
+  validation {
+    condition     = contains(["qa", "production"], var.environment)
+    error_message = "The environment must be 'qa' or 'production'."
+  }
+}
diff --git a/terraform/production/alarms.tf b/terraform/production/alarms.tf
new file mode 100644
index 0000000..671f833
--- /dev/null
+++ b/terraform/production/alarms.tf
@@ -0,0 +1,37 @@
+data "aws_sns_topic" "rc_alarms" {
+  name = "research-catalog-team-alarms-production"
+}
+
+resource "aws_cloudwatch_log_metric_filter" "log_error" {
+  name           = "SCSBusterLogError"
+  pattern        = "{ $.level = \"FATAL\" }"
+  log_group_name = "/ecs/scsbuster-production-tf"
+
+  metric_transformation {
+    name      = "SCSBusterLogError"
+    namespace = "LogMetrics"
+    value     = "1"
+  }
+}
+
+resource "aws_cloudwatch_metric_alarm" "log_error_alarm" {
+  alarm_name = "SCSBusterLogErrorAlarm"
+
+  alarm_description = "Triggered when there's 1 or more fatal error log to SCSBuster within 5 minutes."
+
+  namespace   = "LogMetrics"
+  metric_name = "SCSBusterLogError"
+
+  statistic = "Sum"
+
+  period              = 300
+  evaluation_periods  = 1
+  threshold           = 1
+  comparison_operator = "GreaterThanOrEqualToThreshold"
+
+  datapoints_to_alarm = 1
+
+  treat_missing_data = "notBreaching"
+
+  alarm_actions = [data.aws_sns_topic.rc_alarms.arn]
+}
diff --git a/terraform/production/resources.tf b/terraform/production/resources.tf
new file mode 100644
index 0000000..97c6c9d
--- /dev/null
+++ b/terraform/production/resources.tf
@@ -0,0 +1,18 @@
+provider "aws" {
+  region     = "us-east-1"
+}
+
+terraform {
+  # Use s3 to store terraform state
+  backend "s3" {
+    bucket  = "nypl-github-actions-builds-production"
+    key     = "scsbuster-terraform-state"
+    region  = "us-east-1"
+  }
+}
+
+module "base" {
+  source = "../base"
+
+  environment = "production"
+}