BLACK HILLS SERVICE COMPANY, LLC: $50.6M Department of Veterans Affairs Contract
Summary
Black Hills Corp ($BKH) subsidiary received a $50.6M delivery order from the VA for energy services, representing a small but steady revenue stream over five years. The contract is routine and not transformative for the company's financials.
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Key Takeaways
- 1.Black Hills Corp ($BKH) wins $50.6M VA energy contract, but it's only ~0.44% of annual revenue.
- 2.No direct legislative connection; contract is a routine delivery order under existing VA authority.
- 3.Minimal impact on BKH stock; focus remains on broader utility sector dynamics.
Market Implications
The contract is too small to drive meaningful changes in Black Hills Corp's valuation. The stock will continue to be influenced by utility sector factors such as interest rates, regulatory outcomes, and energy demand. No other publicly traded companies are materially affected.
⚡ Government Convergence
This signal is one of the converging government actions below.
Over the last 90 days, 158 separate government actions have converged on VA / Government Health IT. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 113 federal contracts, 23 bills, 21 procurement notices and 1 executive actions — it's the clearest early tell that Washington is committing to va / government health it, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- ContractCAPEX & D SQUARE, A JOINT VENTURE LLC: $23.2M Department of Veterans Affairs Contract · 2024-09-17
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- ContractSIGNATURE CHOICE II, LLC: $122M Department of Veterans Affairs Contract · 2025-05-07
- ContractHEALTH NET FEDERAL SERVICES, LLC: PROVIDE MANAGED CARE SUPPORT TO THE DEPARTMENT OF DEFENSE TRICARE PROGRAM. CONTRACTOR SHALL ASSIST MILITARY HEALTH SYSTEM IN OPERATING AN IN · 2025-09-03
- ContractBOOZ ALLEN HAMILTON INC: IDENTIFICATION, ANALYSIS, RECOMMENDATIONS, AND DELIVERY OF MILITARY HEALTH SYSTEM AND JOINT STAFF MEDICAL CAPABILITIES FOR DEFENSE HEALTH AG · 2026-01-06
- ContractHEALTH NET FEDERAL SERVICES, LLC: IGF::OT::IGF MANAGED CARE SUPPORT SERVICES IN SUPPORT OF THE TRICARE PROGRAM · 2026-03-04
- ContractHUMANA GOVERNMENT BUSINESS INC: TRICARE MANAGED CARE SUPPORT SERVICES CONTRACT, 5TH GENERATION EAST REGION · 2026-03-19
- ContractTRIWEST HEALTHCARE ALLIANCE CORP: TRICARE MANAGED CARE SUPPORT SERVICES CONTRACT, 5TH GENERATION WEST REGION · 2026-03-19
- ContractEVERNORTH FEDERAL SERVICES INC: TRICARE PHARMACY SERVICES · 2026-03-20
- ContractDELL FEDERAL SYSTEMS L.P: $1.1B Department of Veterans Affairs Contract · 2026-08-13
- Executive actionProclamation: Accelerating Access To Veterans' Benefits And Employment Opportunities · 2026-09-08
- ContractBLACK HILLS SERVICE COMPANY, LLC: $60.4M Department of Veterans Affairs Contract · 2026-09-14
- Procurement noticeElectronic Health Record Modernization Infrastructure Upgrades - Construction - Togus, ME · 2026-09-14
- Procurement noticeElectronic Health Record Modernization Infrastructure Upgrades - Construction - Togus, ME · 2026-09-15
Full Analysis
The Department of Veterans Affairs awarded a $50.6M delivery order to Black Hills Service Company, LLC, a subsidiary of Black Hills Corp, under a Utility Energy Service Contract (UESC) for VISN 23. The contract runs from September 2024 to December 2029, implying an annualized value of approximately $10.12M. Black Hills Corp is a diversified utility holding company with FY2025 revenue of $2.3B, so this contract represents about 0.44% of annual revenue—a modest addition to its regulated utility operations.
No related legislation directly authorizes this specific contract; it falls under existing VA authority for energy savings performance contracts. The contract is a standard delivery order, not a new program. As a result, there is no legislative catalyst amplifying its significance.
Supply chain beneficiaries are limited, as UESC contracts typically involve the utility's own workforce and subcontractors for energy efficiency upgrades. Potential subcontractors could include local construction or HVAC firms, but none are publicly traded with material exposure.
Historically, utility companies like Black Hills Corp see minimal stock price movement from individual UESC contracts of this size, as they are routine and predictable. The stock's performance is more tied to regulatory rate cases, energy commodity prices, and overall utility sector trends.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
BLACK HILLS SERVICE COMPANY, LLC: $60.4M Department of Veterans Affairs Contract
BLACK HILLS SERVICE COMPANY, LLC: $48.0M Department of Veterans Affairs Contract
Contract Details
Recipient
BLACK HILLS SERVICE COMPANY, LLC
Award Amount
$50,625,116
Awarding Agency
Department of Veterans Affairs
Sub-Agency
Department of Veterans Affairs
Contract Type
DELIVERY ORDER
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