This may very well be more like a bug than a feature though. It seems that when booking an award for somebody else, that ticket has the Flying Blue status level/benefits associated with it that belong to the person that paid for the ticket, rather than the person flying.

I have done this a few times but especially at outstations and in contract lounges I got as feedback (from the pax that I got the reward tickets for) that the attendants were very hesitant to even let them into the lounge as the status was not quite as apparent as one would hope.