In plain English
FAR 52.228-13, Alternative Payment Protections, is a contract clause prescribed at FAR 28.102-3(b), most recently dated July 2000. 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 28.102-3(b), insert the following clause:
Prescribing reference: FAR 28.102-3(b).
The official text, verbatim
As prescribed in 28.102-3(b), insert the following clause:
Alternative Payment Protections (July 2000)
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(a) The Contractor shall submit one of the following payment protections:
________________________________________________________________________________
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(b) The amount of the payment protection shall be 100 percent of the contract price.
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(c) The submission of the payment protection is required within _________ days of contract award.
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(d) The payment protection shall provide protection for the full contract performance period plus a one-year period.
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(e) Except for escrow agreements and payment bonds, which provide their own protection procedures, the Contracting Officer is authorized to access funds under the payment protection when it has been alleged in writing by a supplier of labor or material that a nonpayment has occurred, and to withhold such funds pending resolution by administrative or judicial proceedings or mutual agreement of the parties.
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(f) When a tripartite escrow agreement is used, the Contractor shall utilize only suppliers of labor and material that signed the escrow agreement.
(End of clause)