diff --git a/.ruby-version b/.ruby-version
new file mode 100644
index 0000000..be94e6f
--- /dev/null
+++ b/.ruby-version
@@ -0,0 +1 @@
+3.2.2
diff --git a/Gemfile b/Gemfile
new file mode 100644
index 0000000..781df79
--- /dev/null
+++ b/Gemfile
@@ -0,0 +1,6 @@
+source "https://rubygems.org"
+
+ruby "3.2.2"
+
+gem 'octokit', '~> 7.1'
+gem 'dogapi', '~> 1.45'
diff --git a/Gemfile.lock b/Gemfile.lock
new file mode 100644
index 0000000..1fa41a3
--- /dev/null
+++ b/Gemfile.lock
@@ -0,0 +1,36 @@
+GEM
+  remote: https://rubygems.org/
+  specs:
+    addressable (2.8.5)
+      public_suffix (>= 2.0.2, < 6.0)
+    base64 (0.1.1)
+    dogapi (1.45.0)
+      multi_json
+    faraday (2.7.11)
+      base64
+      faraday-net_http (>= 2.0, < 3.1)
+      ruby2_keywords (>= 0.0.4)
+    faraday-net_http (3.0.2)
+    multi_json (1.15.0)
+    octokit (7.1.0)
+      faraday (>= 1, < 3)
+      sawyer (~> 0.9)
+    public_suffix (5.0.3)
+    ruby2_keywords (0.0.5)
+    sawyer (0.9.2)
+      addressable (>= 2.3.5)
+      faraday (>= 0.17.3, < 3)
+
+PLATFORMS
+  x86_64-darwin-21
+  x86_64-linux
+
+DEPENDENCIES
+  dogapi (~> 1.45)
+  octokit (~> 7.1)
+
+RUBY VERSION
+   ruby 3.2.2p53
+
+BUNDLED WITH
+   2.3.17
diff --git a/README.md b/README.md
index eb10d43..43486f8 100644
--- a/README.md
+++ b/README.md
@@ -135,10 +135,7 @@ jobs:
     name: Datadog reports
     if: ${{ always() }}
     steps:
-      - uses: ruby/setup-ruby@v1
-        with:
-          ruby-version: 2.6
-      - uses: scribd/github-action-datadog-reporting@v1
+      - uses: scribd/github-action-datadog-reporting@v2
         with:
           datadog-metric-prefix: 'github.action'
           metrics-type: 'job_metrics'
@@ -169,10 +166,6 @@ jobs:
     name: Track merge request activity
     runs-on: ubuntu-latest
     steps:
-      - uses: ruby/setup-ruby@v1
-        with:
-          ruby-version: 2.6
-
       # Optional step that allows tagging time to merge with a team
       - uses: tspascoal/get-user-teams-membership@v1
         id: actorTeams
@@ -182,7 +175,7 @@ jobs:
           GITHUB_TOKEN: ${{ secrets.OCTOKIT_TOKEN }}
 
       - id: datadog-metrics
-        uses: scribd/github-action-datadog-reporting@v1
+        uses: scribd/github-action-datadog-reporting@v2
         with:
           datadog-metric-prefix: 'github.action'
           metrics-type: 'velocity'
diff --git a/action.yml b/action.yml
index 1c0c499..817c3a0 100644
--- a/action.yml
+++ b/action.yml
@@ -28,11 +28,11 @@ inputs:
 runs:
   using: "composite"
   steps:
-    - name: Install required libraries for gems
-      shell: bash
-      run: |
-        gem install octokit -v 4.25.1
-        gem install dogapi -v 1.45.0
+    - uses: ruby/setup-ruby@v1
+      with:
+        working-directory: ${{ github.action_path }}
+        bundler-cache: true
+
     - name: Export extra data
       shell: bash
       run: |
@@ -45,4 +45,5 @@ runs:
     - id: metric
       shell: bash
       run: |
-        ruby ${{ github.action_path }}/report_github_metrics.rb ${{github.repository}} ${{github.run_id}} ${{ inputs.datadog-metric-prefix }} '${{ inputs.teams }}' '${{ inputs.tagged-branches }}' '${{ inputs.custom-tags }}' ${{ inputs.api-url }}
+        cd ${{ github.action_path }}
+        bundle exec ruby report_github_metrics.rb ${{github.repository}} ${{github.run_id}} ${{ inputs.datadog-metric-prefix }} '${{ inputs.teams }}' '${{ inputs.tagged-branches }}' '${{ inputs.custom-tags }}' ${{ inputs.api-url }}