Large Initial Gap - Linear Analysis

I am doing analysis on an assembly that will undergo plastic deformation where large displacements are expected to occur. The simulation package I have only does static linear analysis. I understand this makes things messy but I've been tasked to simply do a comparison and to get us in the ballpark. There is a portion in the assembly where there is roughly a 3/16" designed gap that will come in contact once the test begins and the parts deform. My problem is when I create a "no penetration" contact set, the two parts will not react with each other when that gap is present. They only react when I lengthen the part and have the two surfaces in contact. How can I make these two parts react with each other or is this something that won't work without the non-linear package? 

Non-Deformed                                     Deformed (Scaled X10)

     

Thank you

SolidworksSimulation