The sexual act of two men getting in the 69 position where one man is doing a hand-stand and the other is behind him giving him a furious hand-job while spinning in a circle (Duggie can be used as a a noun or verb. Definition originates from Tosh.0, season 3, episode 2, video breakdown).
Bill and Tom were watching the Football game, but nothing was happening. So to pass the time they started doing the Duggie.
Tim asked Caleb, "Is it true that you and John Duggied?"