First select the crewmember you want to award the medal to. Make sure there's a brighter box border around them. Then drag the medal onto the crewmember. Not the description, but his portrait in the sub-picture.
(Or so I think. That's what I can remember from awarding medals the other day anyway.)
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"Shoot at everything that moves. If it doesn't move, shoot it anyway, it might move later."
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