Is the firm-fixed price modification CLIN considered a supply or service since its purpose is to deliver an operable, upgraded aircraft? And when it comes to selecting clauses, do I need to select those applicable to FFP Service as well as FFP Supply?
I would look at the definition in FAR 2.101 of a supply. It states, "Supplies" means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing.
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So based on the definition of a supply in the FAR a supply can include both the actual equipment as well as the installation. Therefore I would include the clauses applicable to FFP Supply items.