The brake arms in the pics have the brake posts still attached. These are usually left in the frame, and then only the brake arms are replaced/transferred.
The small screw you're holding in the 2nd last pic is for bolting the brake arm to the brake post, and isn't meant to go directly into the frame. Get the brake post off from your old brakes, reinstall in frame, pop the new brakes on and you should be good.
Oh, and find a new lbs, if they messed this up they shouldn't be going near bikes for money.
The red lines indicate the brake post(which should have stayed in the frame), the green lines indicate where the smaller bolt included in your kit should go, once you've gotten the brake post back in the frame. Red circle on new brake pic indicates wher brake post should go.