Oliver OC3 starter

Hello, my starter is not working at all. The starter did get hot and the engine did not turn over. When we take the starter out of the crawler and hook a battery up to it, it spins. The pinion gear though is always in the same spot , (closest to the starter housing) it doesn't move back and forth on the shaft unless you manually move it with your fingers. So it does slide, just by hand. What makes it return to the other side of the shaft, closest to the spring end on the starter??? There is about a half inch of cap between the pinion gear and the spring now, when its in the start position. Looks to me that its always in the start position...unless moved by hand.
The teeth on the flywheel looks good
My engine does turn over easy by hand, so the engine is not seized.
My father took the starter to a repair shop and said its ok! He may take it back to the repair shop again today but we are just confused on how this starter is suppose to work, it doesn't have the solenoid like a car starter.... Thanks
 

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