In plain English
FAR 52.219-32, Orders Issued Directly Under Small Business Reserves, is a contract clause prescribed at FAR 19.507(g)(2), most recently dated Mar 2020. 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 19.507(g)(2), insert the following clause:
Prescribing reference: FAR 19.507(g)(2).
The official text, verbatim
As prescribed in 19.507(g)(2), insert the following clause:
Orders Issued Directly Under Small Business Reserves (Mar 2020)
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(a) Applicability. This clause applies only to contracts that were reserved for any of the small business concerns identified at 19.000(a)(3).
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(b) If there is only one contract award to any one type of small business concern identified in 19.000(a)(3) as a result of the reserve, the Contracting Officer may issue an order or orders directly to the concern.
(End of clause)