Beginning with a proof of the existence of a discrete-time trajectory, this paper establishes the convergence of a time-stepping method for solving continuous-time, boundary-value problems for dynamic systems with frictional contacts characterized by local compliance in the normal and tangential directions. Our investigation complements the analysis of the initial-value rigid-body model with one frictional contact encountering inelastic impacts by Stewart [Arch. Ration. Mech. Anal., 145 (1998), pp. 215–260] and the recent analysis by Anitescu [Optimization-Based Simulation for Nonsmooth Rigid Multibody Dynamics, Argonne National Laboratory, Argonne, IL, 2004] using the framework of measure differential inclusions. In contrast to the measure-theoretic approach of these authors, we follow a differential variational approach and address a broader class of problems with multiple elastic or inelastic impacts. Applicable to both initial and affine boundary-value problems, our main convergence result pertains to the case where the compliance in the normal direction is decoupled from the compliance in the tangential directions and where the friction coefficients are sufficiently small.