In plain English
FAR 52.242-4, Certification of Final Indirect Costs, is a contract clause prescribed at FAR 42.703-2(f), most recently dated Jan 1997. 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 42.703-2(f), insert the following clause:
Prescribing reference: FAR 42.703-2(f).
The official text, verbatim
As prescribed in 42.703-2(f), insert the following clause:
Certification of Final Indirect Costs (Jan 1997)
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(a) The Contractor shall-
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(1) Certify any proposal to establish or modify final indirect cost rates;
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(2) Use the format in paragraph (c) of this clause to certify; and
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(3) Have the certificate signed by an individual of the Contractor’s organization at a level no lower than a vice president or chief financial officer of the business segment of the Contractor that submits the proposal.
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(b) Failure by the Contractor to submit a signed certificate, as described in this clause, may result in final indirect costs at rates unilaterally established by the Contracting Officer.
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(c) The certificate of final indirect costs shall read as follows:
Certificate of Final Indirect Costs
This is to certify that I have reviewed this proposal to establish final indirect cost rates and to the best of my knowledge and belief:
1. All costs included in this proposal (identify proposal and date) to establish final indirect cost rates for (identify period covered by rate) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) and its supplements applicable to the contracts to which the final indirect cost rates will apply; and
2. This proposal does not include any costs which are expressly unallowable under applicable cost principles of the FAR or its supplements.
Firm: _________________________________________
Signature: _____________________________________
Name of Certifying Official: ______________________
Title: _________________________________________
Date of Execution: ______________________________
(End of clause)