Thanks for the explanation.
One thing that I wanted to add that I think might be important and would appreciate your opinion on is that in the body text of the contact page, I have a link to the home page and the anchor text is the url (e.g. www.coolbluewidgetshere.tld) of the home page. The url contains blue widgets in it.
I also have this same link in the footer of the page, so on this page, the link to the home page appears twice and the keyword phrase is a part of it.
Does this along with the mentions of the phrase blue widgets in other areas of the page make it seem like this page is over optimized?