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Heat exchanger damage?

I recently discovered on my Gas hot water boiler that the pilot light would not stay lit. But while checking I noticed a soot scorch on the front of the boiler. Realizing that there was a flame roll out I called a contractor to come out and check the boiler. Without checking anything, he said we need a new boiler. I just wanted to know what caused this and could it be fixed. I took a photo of the heat exchanger from where the burners are. There has been no water leaks from the boiler from what I can tell. The boiler is shut off and will not be used until it's repaired or replaced. It's a peerless, about 30 years old.

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