I had swarf problems with both my Starrett and Brown & Sharpe. The Starrett
I sent to Starrett, I don't have the exact numbers on repairs, but the
advise you've already received here is about right, closer to $50 for each,
depending on model can be a bit less than 1/2 retail.

These guys fixed my B&S:

http://www.msiviking.com/

I would recommend either. I was very happy with Viking Gauge.

In either case, the caliper can be calibrated and/or recertified by the
service you choose, something that you will unlikely be able to do. I look
at it this way, and even though we're talking woodworking here, it's a
principal. Accuracy, and your ability to measure it, is reliant on your
certified gauges.