In plain English
FAR 52.241-12, Nonrefundable, Nonrecurring Service Charge, is a contract clause prescribed at FAR 41.501(d)(6), most recently dated Feb 1995. 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 41.501(d)(6), insert a clause substantially the same as the following:
Prescribing reference: FAR 41.501(d)(6).
The official text, verbatim
As prescribed in 41.501(d)(6), insert a clause substantially the same as the following:
Nonrefundable, Nonrecurring Service Charge (Feb 1995)
As provided herein, the Government will pay a nonrefundable, nonrecurring charge when the rules and regulations of a Contractor require that a customer pay (1)a charge for the initiation of service, (2)a contribution in aid of construction, or (3)a nonrefundable membership fee. This charge may be in addition to or in lieu of a connection charge. Therefore, there is hereby added to the Contractor’s schedule a nonrefundable, nonrecurring charge for ___________ in the amount of $________ dollars payable .[specify dates or schedules]
(End of clause)