Telescoping pipe or tube - how to set-up for simulation?

I have a colleague that's trying to run a simulation on some of our models. He's noticing a similar issue on several models and I'm wondering how others have resolved this type of problem.

Essentially, the main models in question are a jib crane and a telescopic gate (see images below), but the area of focus is where two pipes or tubes telescope into each other. The inside and outside mating diameters have a small clearance gap, and from what I understand, this is where the problem arises. We've defined a mixed mesh of "treat as solid" for all plates/gussets and "treat as beam" for the tubes.

But how should we define the Contact set for the joints highlighted below? We don't want any penetration, but we're not sure what the best way to define these joints should be. Any idea's?

Thanks,

Shaun

SolidworksSimulation