F t MORI DocID: 117162

CENTRAL INTELLIGENCE AGENCY

WASHINGTON 25. 0. C.

OFFICE OF THE DIRECTOR

9 August 1958

MEMORANDUM FOR: General Andrew J. Goodpaster

SUBJECT : Project CORONA

Herewith is a revised estimate of the cost of Project CORONA

which I promised to prepare for you. Its primary purpose is to explain

how and why cost estimates have changed since submission of the

original outline (COR-0013 and COR-0014) on 16 April.

Dr. Killian has been over this memorandum. Copies of it

will be made available for information to Mr. Quarles and to Mr. Starts.

In addition to the foregoing, who were present when .this matter was

discussed in Dr. Killian's office on 5 August, I am sending a copy to

the Director, Advanced Research Projects Agency.

RICHARD M. BISSELL, JR.

Special Assistant to the Directiir

Attachment:

Copy #1 of COR-0064

EO 12958

3.3(b)(1)>25Yrs

EO 12958 6.2(c)

(C)

APPROVED FOR RELEASE

DATE: FEB 2005

COR-0065

Copy No./
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MORI DocID: 1171628

8 August 1958

PROJECT CORONA

Under date of 15 April 1958 an outline (document number COR-0013)

of the above Project, including an estimate of its cost, was submitted for

the approval of higher authority after discussion with the senior officers of

the organizations concerned. The desired approval was granted and was

accompanied with the specific instruction that all funding for development

and procurement of hardware for CORONA must come from (a) the Central

Intelligence Agency, and (b) the Advanced Research Project Agency. Partly

as a result of this instruction and partly because the assumptions underlying

the final estimates in the Project outline were incorrectly stated, it appears

desirable to present a revised estimate at this tune.

The Project outline contained the following estimates and statements

with respect to financing:

That covert procurement of the payloads for twelve CORONA

vehicles would require about which would be provided

by the CIA.

That twelve Thor (first stage) boosters and Lockheed second

stage vehicles would cost approximately 24 million dollars, on the

basis of a rather arbitrary allowance of 2 million dollars per completed

vehicle.

That this procurement of vehicles would be financed for the

most part by ARPA through the Air Force but that there was some

question concerning the allocation of the cost of the Thor boosters.

That in any case the whole cost of the basic vehicles (but not

of the payloads) would be funded within then approved programs.

3. The following are the specific circumstances that now require

revision of the foregoing statements:

COR-0064

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SE
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)EGIZU,„

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The allowance quoted in paragraph 2. b, above of 2 million

dollars per unit for the cost of the vehicles was incorrect. This

figure was furnished for inclusion in the Project outline on the

assumption that the Air Force would absorb the cost of Thor boosters.

Two million dollars is the unit cost of the Lockheed second stage

vehicle only. That of. the Thor is approximately 1.5 million dollars.

Accordingly, the true cost of each completed vehicle, including first

and second stages (but excluding payload) amounts to 3.5 million

dollars,

The instruction referred to in paragraph 1. above ruled out

the absorption of any part of these costs by the Air Force. Accordingly,

the cost to ARPA of 12 completed vehicles will be 42 million dollars

instead of 24 million dollars as stated in the Project outline.

c. In addition to the 12 Thor/117L vehicles which will be equipped

with CORONA recoverable reconnaissance payloads, some 7 additional

launchings of the same basic vehicle are programmed. Two of these

will be instrumented vehicles for second stage propulsion and guidance

tests; two will have as their primary purpose the testing of the recoverable capsule and recovery procedure but will carry small animals; and

three will be biomedical vehicles carrying primates. The last named

group of three are believed justified without reference to CORONA for

* the contribution they will make toward the Man-in-Space program but

they will also serve significantly to improve the cover for the CORONA

firings. The Thor test firings are essential to CORONA but will also

flight test the second stage vehicle, which is essential to the basic 117L

program. Thus some part of the cost of these seven non-CORONA

vehicles could property be charged to CORONA, since they are in varying degrees necessary for, or essential to, its success. On the other

hand, any specific allocation of these costs would be arbitrary, since

these seven firings also contribute or are essential to other programs

in varying degrees.

4. It is understood that ARPA programs have been revised in the light

of the above circumstances to include funds for 19 Thor/117L vehicles but

that a problem may remain with respect to the cost of the biomedical recoverable capsules. This could affect CORONA since elements of the recovery

system are common to CORONA and the biomedical program and part of its

cost is being borne by the latter.
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MORI DocID: 1171628

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