Deformed part would go close to being the most elegant method. I'll fess up that I'm not absolutely certain of what happens when the Nitrile washer in your case deforms, but I think you probably, mean what we refer to as an O-ring in the cheap seats.
So if you can describe the deformation of the washer using parameters in that file then I would do so and deploy it as a deformable part to describe that condition.
Now if you want to define the deformed section as ovoid, then you would use an ellipse. And you would point out correctly that ellipses aren't parametric, but as long as you're only deforming it in a plane I have seen somebody create a very cunning method of revolving a sketched circle about an axis to describe the ring and then tilting the sketched axis relative to the axis of revolution so that the section described an ellipse. Fun and Games!
Otherwise you have some features that you want to add to the model as assembled, and you can use either a promotion or a wave linking method to do this. Most I suspect would argue some quite vehemently that the wave link being the more modern antecedent of promotions is the only permissible method. I think that I'd probably go for the promotion though there are those elements of simplicity in having the parts list co-operate in reflecting your intent that tilt the balance in that direction for mine.
Before I finish on this I'd like to ask something without meaning to be flippant at all because several people have asked about this kind of thing in the past. I wonder why it is necessary to bother. For what it is worth we usually simply show a slight interference. I wonder do others simply feel differently about the importance of it or whether there is another reason that I'm absolutely missing.
Best Regards
Hudson