Apply a Scale Projection Factor to a proposed terrain

Hello,

I have created a complex proposed terrain model in Geopak SS4. In this project, we are using a Modified State Plane coordinate system and were given a projection factor of 1.00008696. I need to give the proposed terrain .xml files to someone using ArcMapGIS, but they are coming into GIS at the Modified State Plane (with projection factor), while the GIS file is in State Plane (no projection factor). Is there a way to apply the inverse scale factor to the terrain model, so that it can be brought into GIS in the correct location?

Thanks. 

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