In plain English
FAR 52.211-16, Variation in Quantity, is a contract clause prescribed at FAR 11.703(a), most recently dated Apr 1984. 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
We scanned the full clause text and found no sentence directing the contractor to insert this clause into subcontracts. That is a statement about the text, not legal advice: a prime contractor may still flow terms down contractually, an agency supplement (DFARS, VAAR, …) may add requirements, and clauses listed below (if any) may order this clause into subcontracts from the outside.
Where it's prescribed
As prescribed in 11.703(a), insert the following clause:
Prescribing reference: FAR 11.703(a).
The official text, verbatim
As prescribed in 11.703(a), insert the following clause:
Variation in Quantity (Apr 1984)
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(a) A variation in the quantity of any item called for by this contract will not be accepted unless the variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing processes, and then only to the extent, if any, specified in paragraph (b) of this clause.
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(b) The permissible variation shall be limited to:
___ Percent increase [Contracting Officer insert percentage]
___ Percent decrease [Contracting Officer insert percentage]
This increase or decrease shall apply to ____________.*
* Contracting Officer shall insert in the blank the designation(s) to which the percentages apply, such as-
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(1) The total contract quantity;
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(2) Item1 only;
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(3) Each quantity specified in the delivery schedule;
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(4) The total item quantity for each destination; or
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(5) The total quantity of each item without regard to destination.
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(End of clause)