In plain English
FAR 52.207-2, Notice of Streamlined Competition, is a solicitation provision prescribed at FAR 7.305(b), most recently dated May 2006. The complete official text is reproduced below, verbatim, from GSA's published FAR source files.
Its text contains no sentence requiring insertion into subcontracts; see the flowdown section below for what that does and does not mean.
Does it flow down to subcontracts?
No flowdown mandate found in the clause text
This is a solicitation provision — it applies to offerors when submitting an offer, not to contract performance, so subcontract flowdown is generally not the operative question for it.
Where it's prescribed
As prescribed in 7.305(b), insert the following provision:
Prescribing reference: FAR 7.305(b).
The official text, verbatim
As prescribed in 7.305(b), insert the following provision:
Notice of Streamlined Competition (May 2006)
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(a) This solicitation is part of a streamlined competition under Office of Management and Budget Circular No. A-76 (Revised), Performance of Commercial Activities, dated May 29, 2003 (hereafter "the Circular"), to determine whether to accomplish the specified work under contract or by Government performance.
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(b) The Government will evaluate the cost of private sector and Agency or public reimbursable performance, as provided in this solicitation and the Circular.
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(c) A performance decision resulting from this streamlined competition will be publicly announced in accordance with the Circular. If the performance decision favors private sector performance, the Contracting Officer shall either award a contract or issue a competitive solicitation for private sector offers. If the performance decision favors Agency or public reimbursable performance, the Agency shall establish, respectively, either a letter of obligation or a fee-for-service agreement, as those terms are defined in the Circular.
(End of provision)