Falls Church-based defense giant General Dynamics said last week that it has approved a $3.6 million bonus for its former chief executive Jay L. Johnson and a $2 million bonus for current CEO Phebe Novakovic.

The bonus payments for the two covered their work in 2012, the company said in a Securities and Exchange Commission filing.

General Dynamics also provided a bonus of $500,000 for Gerard J. DeMuro, who recently announced his retirement from heading the company’s information systems business. David K. Heebner, picked to succeed him, was allocated a $905,000 bonus, according to the filing.

Engility hiring, expanding in Charleston

Chantilly-based Engility , which was spun off from L-3 Communications last year, said last week it plans to hire about 100 employees and expand its office space by nearly 20,000 square feet in Charleston, S.C., to support contracts with the Navy and its Space and Naval Warfare Systems Center Atlantic.

Engility already has about 150 employees working on the programs and 23,000 square feet.

The company said it will be hiring business analysts, software developers, information assurance personnel and engineers, among others.

Lockheed Martin moves EPA to the cloud

Bethesda-based Lockheed Martin said earlier this month it has successfully migrated the Environmental Protection Agency to the cloud.

The EPA becomes just the latest agency to move to cloud-based e-mail, as federal officials push to make cloud — or Web-based — computing standard within the government.

Under the deal, Lockheed moved more than 22,000 EPA e-mail users to Microsoft Office 365 for Government.

Lynn Singleton, Lockheed’s director of environmental solutions, said cloud computing has gained steam in recent years but remains in a transition phase as federal agencies become more comfortable.

“I still get asked the questions ... ‘What is the cloud?’ ‘How does that work?’” he said.

GAO backs BAE’s protest

The Government Accountability Office earlier this month released a December 2011 protest it upheld. BAE Systems’ Rockville technology solutions and services unit filed the protest against Madison, Miss.-based L-3 Communications Vertex Aerospace over a Navy contract for logistics support of certain trainer aircraft.

BAE argued the Navy made unreasonable evaluation and award decisions. While L-3’s proposal was better rated, BAE’s price was $397.4 million, compared with L-3’s $452 million.

The GAO found that BAE’s perceived lack of experience in a maintenance program was one of the major reasons it was not selected — and this perception was unreasonable.

The GAO recommended the Navy request revised proposals, make a new decision and reimburse BAE.