The W3C are the people that created and maintain the HTML/XHTML language. They are also responsible for CSS. Their site,
http://www.w3c.org offers online validation of your code and lets you add a verified logo if it passes.
The watchfire bobby tests are accesibility tests and are used to seehow accesible your site is to people with disabilities and/or people using none graphical browsers.
As for why the baloney award people do it I can only think of two reasons:
1 - To get your email address for spamming lists.
2 - To get you to link back to them and thus increase their search engine position.