Does that $5,000 include them doing complete reassembly? If so, that is what I would expect around here.
Five years ago all of the machine work and all of the parts required for me to assemble the engine myself would run $2,300. I expect that has increased by at least 20% today, pushing the price up to $2,875.
That leaves $2,125 to reassemble. At a $70/hour shop rate, that represents 30 hours to clean up all of the parts and reassemble the engine.
That $5,000 all of a sudden does not seem that far out of line.