In plain English
FAR 52.243-3, Changes-Time-and-Materials or Labor-Hours, is a contract clause prescribed at FAR 43.205(c), most recently dated Sept 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 43.205(c), insert the following clause:
Prescribing reference: FAR 43.205(c).
The official text, verbatim
As prescribed in 43.205(c), insert the following clause:
Changes-Time-and-Materials or Labor-Hours (Sept 2000)
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(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following:
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(1) Description of services to be performed.
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(2) Time of performance (i.e., hours of the day, days of the week, etc.).
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(3) Place of performance of the services.
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(4) Drawings, designs, or specifications when the supplies to be furnished are to be specially manufactured for the Government in accordance with the drawings, designs, or specifications.
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(5) Method of shipment or packing of supplies.
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(6) Place of delivery.
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(7) Amount of Government-furnished property.
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(b) If any change causes an increase or decrease in any hourly rate, the ceiling price, or the time required for performance of any part of the work under this contract, whether or not changed by the order, or otherwise affects any other terms and conditions of this contract, the Contracting Officer will make an equitable adjustment in any one or more of the following and will modify the contract accordingly:
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(1) Ceiling price.
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(2) Hourly rates.
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(3) Delivery schedule.
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(4) Other affected terms.
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(c) The Contractor shall assert its right to an adjustment under this clause within 30 days from the date of receipt of the written order. However, if the Contracting Officer decides that the facts justify it, the Contracting Officer may receive and act upon a proposal submitted before final payment of the contract.
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(d) Failure to agree to any adjustment will be a dispute under the Disputes clause. However, nothing in this clause excuses the Contractor from proceeding with the contract as changed.
(End of clause)