Dramatic price increase for Military Actuators

Spoiler Actuator,B-52
Spoiler Actuator for B-52H Stratofortress (U.S. Air Force photo – Micaiah Anthony)

An actuator is essentially a device that converts energy into a motion.  Actuators can be simple assemblies built from a grouping of parts like brackets, cylinders, gears and ball screws.  The entire assembly usually built for a specific purpose is known as the actuator.  They run on a variety power sources all depending the available power source such as electric, air, or hydraulic oil.  The device is used to move, push or pull something and is usually part of a larger assembly such as an aircraft wing.

One example of an actuator in use is the action of your hand and fingers moving to picking up an object.  Your hand is actually a very complex actuator.  However the type of actuators we will be talking about are mechanical, nonhuman ones specifically what the Department of Defense (DOD) buys.  Companies with any manufacturing expertise should explore producing actuators for the DOD as some of the items we reviewed only one manufacturer was listed, they were Sole Source.

Where are actuators used?

The actuators that DOD buys are used in items such as Aircraft, UAV’s, Drones, Engines Missiles, Vehicles, Tractors, Cranes, Ships, Brakes, etc.

In our everyday life we use actuators in our homes and vehicles.  Your washing machines’ spin/agitator action relies on an actuator.  Engine actuators, brake actuators, tailgate actuators, windshield wiper actuators and mirror actuators are all used in your car.  Actuators are basically devices used to move, push, pull, open and close things.

The U.S. Military, Department of Defense buys actuators and plenty of them.  Uses include the above mentioned ones plus others such as Aileron actuators, Gun actuators, Aircraft actuators, and Motor actuators.  As the Military equipment gets used and abused actuators either need to be replaced or repaired.  Unlike most household items much of the U.S. Military equipment is very expensive with life spans approaching 50 years, so the process of repairing consumes spare parts such as actuators.

Actuator Motions

Actuators provide two basic types of motion linear or rotational motion. Actuators provide two basic types of motion linear or rotational motion. An Air/Hydraulic cylinder could be pushed and pulled; a rotary Ball screw/Lead screw can be turned by an electric motor.

Commonly used Actuators

Some common types of actuators are: Electro-mechanical actuators, Hydraulic-pneumatic actuators, Mechanical actuators, Electro-pneumatic actuators, Explosive actuators, Piezoelectric actuators.

Types of Actuators the Defense Department Buys

The Department of Defense uses a variety of actuator types on various platforms such as Aircraft, Ships, Systems, and Vehicles.  For this article we decided to discuss a few types of actuators the Department of Defense is currently buying.  We did some quick research in BidLink.net to find a few current open government solicitations to review, try it for yourself.  After looking at a few interesting open solicitations for actuators we then reviewed all the past procurement history (contract history) for each of the NSN’s as well as related data found in BidLink, look below to see what we found.

The four categories of actuators we decided to review were: Linear hydraulic-pneumatic actuators, Rotary electro-mechanical actuators, a Parking brake actuator assembly and a Spring brake actuator.  These 4 items were just a sample of what we found.

Stabilizer trim actuator,linear actuator, KC-135R Stratotanker
Linear actuator example. This Stabilizer trim actuator is used in the tail of a KC-135R Stratotanker. It controls the horizontal stabilizer, pilots it to adjust the pitch, or up and down movement, of the aircraft’s nose.  Photo – Dakota Bergl

Linear Actuator

A simple example of a linear actuator in use by the U.S Marines is for the opening of a 500 pound vehicle rear door on the Mine Resistant Ambush Protection (MRAP) Buffalo vehicle.  This specific actuator is a linear electric actuator.  When DOD purchases this item they use the official Item Name: Actuator, Electro-Mechanical, Linear.  When searching for government solicitations knowing what DOD calls the item “The official name” is essential in either researching past government contract awards or bid searching.

Linear hydraulic-pneumatic actuator

This NSN 4810-01-620-4341 (part number 3847AS286-1) is a linear hydraulic-pneumatic actuator currently being sold to the Defense Logistics Agency (DLA) Maritime hardware and electrical division by a by a broker of military parts.  This item is used with the Navy’s Ground Support Equipment (GSE).

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According to BidLink NSN records the approved manufacturer is Carolina Growler CAGE code 550C1.  They supplied the part direct to DOD back in the year 2014 under two separate contracts.  Since then from 2015 till today the part has been sold to the DOD by only one broker. Pricing has risen steadily for three years and skyrocketed in the past two years, now costing 3 times more than what the manufacturer charged when they sold it direct to DOD in 2014.  See graph below for details.

4810-01-620-4341, actuator
Graph showing sales of an actuator sold to the Department of Defense directly by the manufacturer; then a broker takes over the sales and prices steadily increase. This specific example is for a linear hydraulic-pneumatic actuator NSN 4810-01-620-4341. This is not a unique case as we have seen this happen with other items.

What are some possible reasons for such a dramatic price increase?

Did the price for this NSN 4810-01-620-4341 go up due to material costs?

Is the item manufactured by only one company is it a sole source item? While working on another article we saw this same dramatic price hike on another NSN from the same broker.

Is there no competition?

These are the some of the questions that the data will answer.

What could some potential outcomes be after looking at the data?

  • DOD might look for new companies to manufacture this item.
  • New Manufacturers might consider becoming a new source for this item.

Current Solicitations for NSN 4810-01-620-4341

This linear hydraulic-pneumatic actuator is ordered several times per year at varying quantities.  Last week a government solicitation was posted asking for a quantity of 22 pieces.  Will a new manufacturer start producing this item or will the price rise again?

Sole Source Items

When items are “Sole Source” one effect can be price increases due to no competition.  Some companies look at items with no competition as potential business opportunities for them. The Department of Defense does not want items with only one source.  They are constantly looking for new sources; manufacturers with specific skills should be on the lookout for items like these.

Rotary electro-mechanical actuator

This Rotary actuator NSN 3010-01-316-0190 U.S. Army part number 12285327-1 is actively being purchased by the Department of Defense.  A complete drawing package is available from the DOD for any manufacturer interested in making this item.  BidLink contract procurement history records show the same manufacturer has been winning contracts for this item for the past 5 years.  There is currently an open solicitation for this NSN 3010-01-316-0190 with potential contract value over $100,000.00

This item is used on a few different U.S. Army and U.S. Marine tanks.

Parking brake actuator assembly

This NSN 2530-01-568-0031 part number TG404-0819 from HDT Expeditionary Systems/DHS Technologies is parking brake actuator assembly used by the U.S. Army as part of their Trailer Mounted Support System (TMSS) Generator/Power Plant Utility.  This is one of the many shelter systems the U.S. Army uses when setting up Tactical Operations Center or TOCs all over the world when they deploy.  It’s pulled by a HMMWV and if you go camping you’ll want one of these.  It’s basically a full size tent complete with AC Generator, HVAC unit and electric outlets included all mounted on a trailer.  In fact you might have seen one on display if you live in Laredo, Texas.  The Department of Defense gave the Homeland Security Investigations, Immigration and Customs Enforcement (ICE) division one of these setups in May of 2018.

The Defense Logistics Agency (DLA) Land and Maritime Vehicle support division is currently looking for new sources of this item and they say there is an annual demand quantity of 41.  The last contract price we show in April 2019 was around $2,000.00 each.  All the DOD suppliers shown in our recent procurement history for this were all brokers.

Trailer Mounted Support System, TMSS, TG200-1000T
Trailer Mounted Support System (TMSS)TG200-1000T.  The Parking brake actuator assembly NSN 2530-01-568-0031 is used on the Trailer Mounted Support System (TMSS) above.

Spring Brake Actuator

The NSN 2530-01-483-3949 is a Spring brake actuator used on the 2.5 Ton Multi-Purpose Vehicle Trailer.  It’s a combination an air operated braking device that performs the functions of service braking and emergency or park braking.  One section of the device functions as a brake chamber and the other section uses a heavy duty spring, piston, and diaphragms.

This current open solicitation SPE7L1-19-T-210B for this NSN 2530-01-483-3949 closes next week is for a quantity 145 pieces.  DOD has a complete set of drawings for any company to review.  This current solicitation for spring brake actuators is also a Hubzone Set-Aside.

Past Procurement history shows a mix of distributors/brokers and OEM selling this item.  Companies like Oshkosh and Haldex make parts like this, however since DOD has a complete set of drawings any company with manufacturing capabilities could become a new source for this item.

In this review we uncovered opportunities for manufacturers of brake components and vehicle parts.  In addition the review of the data showed us other potential trends and opportunities.  We only looked at 4 parts today, the Department of Defense posts thousands of new solicitations per day for parts they need.

Time spent researching; going beyond just simple bid searching can lead to new opportunities for your company to sell to DOD.  Asking questions like who sold the item in the past? Is the company a manufacturer or a broker?  What other parts do they make?  Where are those items used?  These are some of the questions you should ask while reviewing the data.  You might find new directions or new product lines your company can produce.

BidLink has been a leading provider of DOD procurement research tools and data for the past 20 years. Find defense contracts, solicitations, sources for items, and research competition. Learn more at www.bidlink.net

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