I must be missing somthing here. We don't know what part of the engine is "blown", can't tell without spending more money than its worth? First hint - VERY WRONG MECHANIC - GO ELSEWHERE!! If nothing else, describe what happened here. Some of us have "autopsied" blown motors before.
If there is block/crank/connecting rod/piston damage, I don't see where the 3.0L isn't a possibility. SHO-Shop sells the short blocks for $1500 ("3.0L Conversion Kit - $1499 NEW! not rebuilt. Breathe new life into your Contour SVT/Cougar, or regular 2.5L with our 3.0L Conversion Kit. Brand New short block is modified in our facility and comes with all necessary gaskets, seals and bolts. Adds 25 HP and 40 ft.lbs of torque without any airflow modifications! No core is needed!")
You'll need to keep a bunch of parts from the SVT, but you start off with a 0 mile block. Even if they charge $1000 to ship the 3.0L from California and install it, you're at $2500, which sounds less than the multi-K the Ford dealer quoted.
As far as the year of the block, wrong. You have to keep the correct year emissions on the vehicle according to Federal law (if they ever figure out what you are supposed to have). Dropping a short block has nothing to do with it.
As far as a shop with a clue, SPMOTORSPORTS is in Gaithersburg, MD. How far from you? Anybody talked to them to see how much they'd charge for the 3.0 swap? They do SHO work, as well as some Contour work.
Sorry about the temper regarding the dealership, but they aren't mechanics anymore, just "technicians" who follow a manual.
