to me the prices for the thermostat and the rear O2 seem high, but it might be due to you being in alaska?
what is included in the 60k service? has this car ever had the timing belt done on it? (80k MILE service usually) - if not, that's something that should be done to it now as it is 7 years old. The thermostat is included in that work - if done properly, pulleys(tensioner)/water pump/belt(s)/thermostat....and maybe something else? I just woke up lol
typically you can get it done for $1000 or less, I think this guy may charge you in the 1200 range for it. But you should ask how many hours work it will take for the timing belt service, and look up maybe ordering the kit online and bringing the parts for them to install. or get it done by someone else other than a VW dealership..... mine was done as part of the deal with my car, I knew the dealer and the shop which works in conjunction with them, I had my dad source the parts through his work(at cost of course
), we provided the parts - they the labour 
what is included in the 60k service? has this car ever had the timing belt done on it? (80k MILE service usually) - if not, that's something that should be done to it now as it is 7 years old. The thermostat is included in that work - if done properly, pulleys(tensioner)/water pump/belt(s)/thermostat....and maybe something else? I just woke up lol
typically you can get it done for $1000 or less, I think this guy may charge you in the 1200 range for it. But you should ask how many hours work it will take for the timing belt service, and look up maybe ordering the kit online and bringing the parts for them to install. or get it done by someone else other than a VW dealership..... mine was done as part of the deal with my car, I knew the dealer and the shop which works in conjunction with them, I had my dad source the parts through his work(at cost of course