First Contract: Is this normal?

Yes, more every year. Really, the physical is a physical clearance to work. All you need is a statement from a provider saying that, or providing any exceptions such as a disability. However, you also need vaccination records and titers (titers usually are a fine substitute for other documentation) and I list all of them on a single page for my physician to sign along with a clearance statement. What I put on my form is "This employee has no physical impairment/disability nor contagious disease and my provide services as an acute care RN without restrictions".

Typically the agency and/or the vendor manager may ask for more than the hospital actually needs. This is to maintain their own policies for JC and the state, and usually defaults to the highest minimum standards of any of their client hospitals. This makes it easier to now swing to any other assignment they have after you are finished with this one, saving tons of work.

Speaking of tons of work, build your own professional portfolio so that you can simply sign on to a new agency by sending them all this paperwork - I personally compile them into two pdfs, all the health stuff in one, and the work history and credentials in the other. I strongly recommend that you get written references for a number of compelling reasons. I use a form which you can download from PanTravelers: sign up at the free level and go to downloads.