See General Coding Rules....z/OS V1R8.0 DFSORT Application Programming Guide
This field can appear anywhere between column 2 and column 71 of the first line. It contains a word (for example, SORT or MERGE) that identifies the statement type to the program.
Frank Yaeger wrote:Your 'OUTFIL' lines start in column 1. They must start in column 2 or later, e.g. replace b with a blank: