As has been said, yes that is a bearing. If it, & all it's bretheren are undamaged, & if you are merely doing a major overhaul, then leave them in, however, if you are doing a total recondition job, including a rebore, then your machine shop will give you the good oil. DO NOT attempt to remove or refit these bearings yourself at they require a specialist tool to do it properly. If replacement is warranted, then let the machine shop do it.

When they ARE done properly, they should not require line boring to true up the bores.
If the block is hot tanked in a caustic solution in order to clean it, then these will need to come out as the caustic will ruin the bearing metal anyway.