Forget the LRECL. You have the average length (204) so you know how much input and output there will be.
Kolusu won't be back here until start of business on the West Coast, USA. I think that he will suggest that you send information to the DFSORT support team, who would give you the best possible advice with what you can supply to them.
Changing from tape to DASD is only going to affect the reading of the data, and the writing of the data, so is far from being a cure-all.