To me this actually looks okay. I've actually heard of the winner of the last contest (Jennifer Key), though I can't tell you from where.
Granted, looking "okay" doesn't necessarily mean it's a great deal. Never having heard of the press before -- and being relatively plugged in to the poetry world -- means that winning the contest won't bring your friend any great acclaim. That said, it's a chapbook contest, and chapbook contests rarely do.
They say they follow CLMP standards, which is a good thing (as most small, literary presses try to do the same). They also have blind submissions -- or that's why they ask for two cover pages, one minus the author's info.
Lastly, the prize is 10K dollars. For a chapbook. That's more than most major poetry book prizes. In fact, that's crazy.
I'm not pointing that out as a red flag. Just as sheer madness.
(In sum: for money and possible chapbook publication, go for it; for the publication bringing cred in the poetry world, it probably won't so much.)