In plain English
FAR 52.247-2, Permits, Authorities, or Franchises, is a contract clause prescribed at FAR 47.207-1(a), 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 47.207-1(a), insert the following clause:
Prescribing reference: FAR 47.207-1(a).
The official text, verbatim
As prescribed in 47.207-1(a), insert the following clause:
Permits, Authorities, or Franchises (Jan 1997)
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(a) The offeror does □, does not □, hold authorization from the Federal Highway Administration (FHWA) or other cognizant regulatory body. If authorization is held, it is as follows:
__________________________________________________ (Name of regulatory body)
__________________________________________________ (Authorization No.)
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(b) The offeror shall furnish to the Government, if requested, copies of the authorization before moving the material under any contract awarded. In addition, the offeror shall, at the offeror’s expense, obtain and maintain any permits, franchises, licenses, and other authorities issued by State and local governments.
(End of clause)