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is it possible for a federal agency with appropriated funds, to create an award.  Such as an "in remembrance" award that the public can apply for and receive?  This is still in the infancy phase but need to provide advice on if it is possible?  Would it follow the rules of a grant? would it be required to be given to a company?  any advice?

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Based on your question, it appears you have some type of appropriation.  Do you have a statutory authorization to spend those funds on an award?  There is no authority to spend and appropriation without a specific authorization.  What agency are you with?  What color of funds do you have?  What does your agency's authorization act say you may do with those funds?

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