In plain English
FAR 52.214-25, Step Two of Two-Step Sealed Bidding, is a solicitation provision prescribed at FAR 14.201-6(t), most recently dated Apr 1985. 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 14.201-6(t), insert the following provision:
Prescribing reference: FAR 14.201-6(t).
The official text, verbatim
As prescribed in 14.201-6(t), insert the following provision:
Step Two of Two-Step Sealed Bidding (Apr 1985)
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(a) This invitation for bids is issued to initiate step two of two-step sealed bidding under subpart 14.5 of the Federal Acquisition Regulation.
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(b) The only bids that the Contracting Officer may consider for award of a contract are those received from bidders that have submitted acceptable technical proposals in step one of this acquisition under _________________[the Contracting Officer shall insert the identification of the step-one request for technical proposals].
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(c) Any bidder that has submitted multiple technical proposals in step one of this acquisition may submit a separate bid on each technical proposal that was determined to be acceptable to the Government.
(End of provision)