Local Disaster Contracting Fairness Act of 2006 - Prohibits the head of an executive agency from entering into an agreement for debris removal or demolition services in connection with Hurricane Katrina or Hurricane Rita reconstruction efforts unless the agreement specifies that: (1) all of the work under the contract will be performed by the prime contractor or one or more subcontractors at one tier under the contract; (2) any work performed under the contract by subcontractors will be performed by local subcontractors, except to the extent that local subcontractors are not available to perform any such work; (3) the prime contractor will act as the project manager or construction manager for the contract; and (4) the prime contractor has primary responsibility for managing all work under the contract and is to be paid a certain percentage of the overall value of the contract as sole compensation for assuming the risk associated with such responsibility.
Requires the agency head, in entering into an agreement for debris removal or demolition services in connection with Hurricane Katrina or Hurricane Rita reconstruction efforts, to give preference in the source selection process to each offeror who certifies that any work that is to be performed under the contract by subcontractors will be performed by local subcontractors.