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Modifying existing contracts to incorporate an updated clause is not common but it certainlay does happen from time-to-time. While FAR 1.108(d) says "at the contracting officer's discretion; the language in the interim FAR 2019-009 takes that discretion away from the contracting officer and directs the change be made based on the conditions and dates identified. Your scenario certainly sounds like it meets the criteria.
An Acting Principal Director, Defense Pricing and Contracting memorandum was issued 23 July 2020 and it's purpose was to facilitate implementation of the interim rule. I am forwarding that to your e-mail address as I could not find a link to it at the DPC Policy Page. It will be able to answer the other questions you asked above. But leadership in your organization should also have recieved a copy.
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