In plain English
FAR 52.242-2, Production Progress Reports, is a contract clause prescribed at FAR 42.110, most recently dated Apr 1991. 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 42.1107(a), insert the following clause:
Prescribing reference: FAR 42.110.
The official text, verbatim
As prescribed in 42.1107(a), insert the following clause:
Production Progress Reports (Apr 1991)
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(a) The Contractor shall prepare and submit to the Contracting Officer the production progress reports specified in the contract Schedule.
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(b) During any delay in furnishing a production progress report required under this contract, the Contracting Officer may withhold from payment an amount not exceeding $25,000 or 5 percent of the amount of this contract, whichever is less.
(End of clause)