Keeping my squad mates alive is very high on my priority list. I have seen how weapons and weapon mods work with squad mates (dead simply, in fact).
Is there a similar ability to give my used armor to them (after I have it fabreezed of course)?
No there is not. Though, when selecting them you can change their armor to be different (and provide different bonuses). On the Xbox, you can hit Y
to change it. To see the bonuses, just view the info for the squad member and it is at the bottom. But you are unable to transfer your armor to them. (It's not the right size anyway).
You start out with two armor options for each squadmate- a 25% improvement on something useful to their class.