Thank you all for your suggestions and response to my question.
Some background info. I looked for a truck that was original or extremely close for a while before finding this truck. I purchased the truck how it looks now. I have only done minor maintenance items on it over the past year.
I noted the truck was smoking a bit after driving it 4or 5 times. Now it is bug spraying and choking anyone unfortunate to get stuck behind me. Thought about a rebuild or upgrading the engine to something era correct to get away from the 216.
Checked around at various machine shops for the work to rebuild and most just flat out refused to work on it but one suggested a machine shop that specializes in antique engine restoration, that is where the that cost came from. At that price I figured I would be better off finding something more modern that I can rebuild and machine shops will work on it. Don't really want to swap out the frame I just read someone's post who utilized an engine from an S10.
