I have seen bunches of the "Surplus" military engines for sale over the years.
Got into a warehouse full of them a few years ago and had my run of the place to look them overand pick and choose.
I found a lot of them that had serious issues and some that appeared to be "Intact"
Sadly these engines in so many cases have serious issues.
Most generally, from what I have been told by the young folks that work in the motor pools, especially over seas, that they dont dig inside an engine normally out in the field.
If its inside and not readily fixable, they grab a fresh one in a box and install it.
This could mean anything from a internal coolant leak to a bad rod, main, noises, blown head gasket, broken rocker arm/guide button or ???
I am told that out in the field they are not really set up to do major repairs.
Now when it comes to the condition of these engines, I have seen some that were running takeouts and were in pretty good shape, and others that were trash and not even repairable.
Some were parts engines that you might get some pistons/rods and things and others were total losses, just did not look too bad from the outside.
A local fellow bought 5 of the military 6.2 units in the GREEN box from an auction up near Seattle and after they were apart the scene was pretty grim.
Two had broken cranks, one had lost a rod which had knocked a chunk from the bottom of the cylinder, one had spun a number one main and the last one had a badly cracked head that had filled a cylinder with coolant.
All of these engines looked great on the outside, and some did not even have much dirt on them.
Consider these to be like yanking that handle on a slot machine in Vegas.
There have been some winners.
We have all heard the stories about nearly new or "NEW" Surplus stuff that was sold for pennies.
I have not seen any of these.
The boys in the motor pool don't yank enignes for fun, so if its a takeout, it probably has issues.
My advice is simple, If you can get them cheap enough it might be worth a roll of the dice.
Sorry that I can't be more optimistic, but I have seen just way too much carnage come from those little green metal canisters.
Good luck and have fun
Missy