It is official, rods are toast. Now rebuilders

ok so update: engine out and apart. we found that the Oil pick up arm had been pushed to the side, and probably wasnt picking up much oil. The crankshaft shows obvious signs of etching so it was metal on metal at the bearings towards the back of the engine (where the sound was coming from).

The engine actually looks pretty good, pistons look good etc... So we discovered that this engine has been rebuilt, as it has .040 already. So now we are thinking we go up to .060. Any issues with that? Timing gear and chain look good as well. But everything is going to be replaced since we took the thing apart anyway. Should I keep any of the old parts? Is there any value there? or just trash? thanks so much for all your help guys. Here is a pic before we put it into the boiler.