Presumably that is for a base engine, turbo, including labour and VAT?
Phone round some good indys, the $tealers will be fleecing you for about £80 an hour for labour.
At a guess, it must be circa £5K for the engine and turbo from VW (parts only).
What is the age mileage and how far out of warranty is it? Might be worth asking for a goodwill contribution from VW if it's got full history etc etc.