//OUTPUT1 DD DSN=A.B.C,DISP=(NEW,CATLG,DELETE),
// DCB=(LRECL=100,BLKSIZE=,RECFM=FBM),
// SPACE=(CYL,(10,5),RLSE)
Try this instead. Notice that the secondary will take advantage of a large dataset whereas without that parameter the largest secondary that makes any sense is < 300. Oh, and if indeed it is from a COBOL program make sure that the FD says "BLOCK 0"!!!!! If it isn't "BLOCK 0" then you might not even need to change your JCL because it wasn't fixed block machine. It was merely fixed and unblocked so the space would almost never be enough. And finally you may wish to revisit why you have the M in the RECFM to begin with. Notice also that I took out the LRECL, the BLKSIZE and the RECFM. That is because the FD in the COBOL program is all you need and putting it in the JCL is not only redundant but dangerous because any change will have to be now done in multiple places.
//OUTPUT1 DD DSN=A.B.C,DISP=(NEW,CATLG,DELETE),
// DSNTYPE=LARGE,UNIT=(SYSALLDA,59),
// SPACE=(CYL,(10,1000),RLSE)