Add APM docs

README.md

@@ -130,14 +130,22 @@ specify init my-project --ai claude --debug
 specify check
 ```
 
-## <EFBFBD> APM Integration
+## 📦 APM Integration - NPM for Agent Context
+
+**Context as Code Packages**: Package and share agent intelligence like npm packages. With APM, your agents get:
+
+- **Team knowledge** from reusable context packages
+- **Optimized context** through mathematical relevance scoring  
+- **Universal compatibility** via dynamically generated Agents.md files
+
+[Complete Context Management Guide →](docs/context-management.md)
 
 Spec Kit includes full APM (Agent Package Manager) functionality for managing modular context packages and files:
 
 ### Unified Initialization
 ```bash
-# Creates both SDD and APM structures
+# The --with-apm flag creates both SDD and APM structures 
-specify init my-project --ai claude
+specify init my-project --ai claude --with-apm
 ```
 
 ### APM Commands

docs/context-management.md

@@ -0,0 +1,59 @@
+# Context Management with APM
+
+## NPM for Agent Context
+
+Just like npm revolutionized JavaScript by enabling package reuse, APM creates an ecosystem for sharing agent context.
+
+## Package Composition & Reuse
+
+```yaml
+# Your project inherits team knowledge via apm.yml file in the root
+dependencies:
+  apm:
+    - company/design-system     # UI patterns, brand guidelines
+    - company/security-standards # Auth patterns, data handling
+    - community/best-practices  # Industry standards
+```
+
+**Result**: Your project gets all the instructions of above packages applied via dynamically generated Agents.md files using `specify apm compile`. These files are optimally generated to minimize contextual load for Agents compatible with the Agents.md standard.
+
+**Enterprise Scenario**: Design team creates accessibility guidelines once → entire organization uses them → agents work consistently across all projects.
+
+## Mathematical Context Optimization
+
+**The Technical Foundation**: APM uses mathematical optimization to solve the context efficiency problem.
+
+```
+Context_Efficiency = Relevant_Instructions / Total_Instructions_Loaded
+```
+
+**Why This Matters**: When agents work in `/styles/` directory, they shouldn't load Python compliance rules. APM's Context Optimization Engine ensures agents get minimal, highly relevant context.
+
+**The Algorithm**: Constraint satisfaction optimization that finds placement minimizing context pollution while maximizing relevance. Each instruction gets mathematically optimal placement across the project hierarchy.
+
+## Quick Start
+
+```bash
+specify init my-project --with-apm --ai copilot
+specify apm install company/design-system  
+specify apm compile  # Mathematical optimization generates distributed AGENTS.md files
+```
+
+## Universal Agent Compatibility
+
+APM generates distributed `AGENTS.md` files compatible with the [agents.md standard](https://agents.md), working with any coding agent (GitHub Copilot, Cursor, Claude, Codex, Aider, etc.).
+
+## Authentication Setup (Optional)
+
+```bash
+export GITHUB_APM_PAT=your_fine_grained_token_here
+```
+
+Only needed for private packages. Public community packages work without authentication.
+
+## The Complete Value
+
+1. **Package Ecosystem** - Share and compose agent intelligence like code dependencies
+2. **Mathematical Optimization** - Context Optimization Engine ensures relevance without pollution  
+3. **Universal Standards** - Works with any agent via industry-standard agents.md format
+4. **Enterprise Ready** - Team knowledge scales across entire organizations