diff --git a/tools/run_shipyard.sh b/tools/run_shipyard.sh
index e2edb918..1647d4ce 100755
--- a/tools/run_shipyard.sh
+++ b/tools/run_shipyard.sh
@@ -34,6 +34,11 @@ set -e
 DIR="$(realpath $(dirname "${BASH_SOURCE}"))"
 source "${DIR}/shipyard_docker_base_command.sh"
 SHIPYARD_HOSTPATH=${SHIPYARD_HOSTPATH:-"/home/shipyard/host"}
+# set default value for OS_PASSWORD if it's not set
+# this doesn't actually get exported to environment
+# unless the script is sourced
+export OS_PASSWORD=${OS_PASSWORD:-password}
+
 # Execute Shipyard CLI
 #
 # NOTE: We will mount the current directory so that any directories
diff --git a/tools/shipyard.sh b/tools/shipyard.sh
index 36b1cb8b..9ed8e1f6 100755
--- a/tools/shipyard.sh
+++ b/tools/shipyard.sh
@@ -39,17 +39,21 @@ set -e
 SHIPYARD_HOSTPATH=${SHIPYARD_HOSTPATH:-"/target"}
 NAMESPACE="${NAMESPACE:-ucp}"
 SHIPYARD_IMAGE="${SHIPYARD_IMAGE:-quay.io/airshipit/shipyard:master}"
+# set default value for OS_PASSWORD if it's not set
+# this doesn't actually get exported to environment
+# unless the script is sourced
+export OS_PASSWORD=${OS_PASSWORD:-password}
 
 # Define Base Docker Command
 base_docker_command=$(cat << EndOfCommand
-sudo docker run -t --rm --net=host
+sudo -E docker run -t --rm --net=host
 -e http_proxy=${HTTP_PROXY}
 -e https_proxy=${HTTPS_PROXY}
 -e no_proxy=${NO_PROXY:-127.0.0.1,localhost,.svc.cluster.local}
 -e OS_AUTH_URL=${OS_AUTH_URL:-http://keystone.${NAMESPACE}.svc.cluster.local:80/v3}
 -e OS_USERNAME=${OS_USERNAME:-shipyard}
 -e OS_USER_DOMAIN_NAME=${OS_USER_DOMAIN_NAME:-default}
--e OS_PASSWORD=${OS_PASSWORD:-password}
+-e OS_PASSWORD
 -e OS_PROJECT_DOMAIN_NAME=${OS_PROJECT_DOMAIN_NAME:-default}
 -e OS_PROJECT_NAME=${OS_PROJECT_NAME:-service}
 EndOfCommand
diff --git a/tools/shipyard_docker_base_command.sh b/tools/shipyard_docker_base_command.sh
index 197e77c4..a5a9f0a1 100644
--- a/tools/shipyard_docker_base_command.sh
+++ b/tools/shipyard_docker_base_command.sh
@@ -23,14 +23,14 @@ SHIPYARD_IMAGE="${SHIPYARD_IMAGE:-quay.io/airshipit/shipyard:master}"
 
 # Define Base Docker Command
 base_docker_command=$(cat << EndOfCommand
-sudo docker run -t --rm --net=host
+sudo -E docker run -t --rm --net=host
 -e http_proxy=${HTTP_PROXY}
 -e https_proxy=${HTTPS_PROXY}
 -e no_proxy=${NO_PROXY}
 -e OS_AUTH_URL=${OS_AUTH_URL:-http://keystone.${NAMESPACE}.svc.cluster.local:80/v3}
 -e OS_USERNAME=${OS_USERNAME:-shipyard}
 -e OS_USER_DOMAIN_NAME=${OS_USER_DOMAIN_NAME:-default}
--e OS_PASSWORD=${OS_PASSWORD:-password}
+-e OS_PASSWORD
 -e OS_PROJECT_DOMAIN_NAME=${OS_PROJECT_DOMAIN_NAME:-default}
 -e OS_PROJECT_NAME=${OS_PROJECT_NAME:-service}
 EndOfCommand