It must be hidden under the intake manifold in the top of the engine block, this would be the reason for many hours labor. I would ask them to replace the connector and wire (if it is not wired straight back to the computer, then no choice but to use the old one). I would also ask if they have an oscilloscope so they can test the new one by banging gently on the engine block and watch the AC Voltage trace on the scope prior to putting it back together. Also mention, that you are not trying to tell them how to do their job, but could they please say what the torque value is for the sensor installation torque. Ultimetely not a hard job, just don't want to do all that and find out it wasn't properly installed or that it had a bad connector or a bad shielded wire.
Actually, when they get the engine torn down to the point of being able to remove the KS they should try to test it right then and there to rule out a bad sensor or bad wire or connector, again with the gentle hammer to the block test while using the oscilloscope.
Just appologize up front and say you did a little homework on the web and it will all be cool.