In plain English
FAR 52.217-4, Evaluation of Options Exercised at Time of Contract Award, is a solicitation provision prescribed at FAR 17.208(b), most recently dated June 1988. 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 17.208(b), insert a provision substantially the same as the following:
Prescribing reference: FAR 17.208(b).
The official text, verbatim
As prescribed in 17.208(b), insert a provision substantially the same as the following:
Evaluation of Options Exercised at Time of Contract Award (June 1988)
Except when it is determined in accordance with FAR 17.206(b) not to be in the Government’s best interests, the Government will evaluate the total price for the basic requirement together with any option(s) exercised at the time of award.
(End of provision)