Thanks for the help! Problem with the backyard is, we just moved into this house 3 weeks ago, so I am not positive on the history of it. I don't know what else has been back there besides a little dog the previous owner had.
They are definitely blood suckers, I hate it! The poor little guy has a small scab forming on his head.
I do have another little dog, she is a daschund mix that we rescued. I gave her a flea treatment (Advantedge) to help prevent them from spreading to her. She is 6 1/2 and very well behaved. I am hoping that she helps kind of mother him in a sense.