Pickup to pan clearance

It's screwed into the pump, right? If so back it off a little. That should bring it closer to the pan.

BTW: IMO the clearance is fine at 1/2" from the pan bottom so even if backing it off a little only brings it to that level it's fine
not me ! 1/4-3/8'' , 3/8 preferably. I didn`t catch what engine tho.