As peteroznewman suggested, try to reduce the gap and define an initial velocity to save on computational time. You can use Newton's laws of motion to calculate the velocity. Also, to see if the contact is established during the solution, you can use a contact tracker to monitor the contact stiffness on the go. It must be a non-zero value when the contact is established. To do this, drag and drop the contact onto Solution Information and in the details of the Contact tracker, change the variable to max. normal stiffness. If you already have the simulation running, right click on Solution Information > Insert > Contact will insert a contact tracker. Then you can pick the contact of interest and start tracking the contact normal stiffness.