Is a smartnet contract to be able to access the software to update the ASA 5510 to the required version and to access the proper ASDM software, or are there other associated fees to enable this functionality?
Correct, you would need a smartnet contract to be able to download ASA and ASDM software from cisco.com download site. There are no extra fee if you already have smartnet and your CCO ID linked to your smartnet.
Do I also need to upgrade from Basic software to Security+ package, this is what one of our vendors is saying we will have to do to be able to do a fallback like that?
No, you don't require Security+ license on ASA5510 to run fallback route/route tracking feature.
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