I would drop the DCB infromation from the JCL, SORT will provide that, then it is only in one place for maintenance.,
You can't insert contstants with a REFORMAT statement, If you leave that as it is and then use INREC OVERLAY=(col:,X,col:X) that should do it.
Alternatively you can take out the 5,1 and use INREC BUILD to insert blanks. With lots of data this will be slower that using the OVERLAY.
Need to Compare 2 files and select matching/MERGE records
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