My Axis .223 hardwood will shoot Fiocchi 50 gr v-max down to 1/2 MOA. FMJ bullets are worse, but not 3" groups. Let's assume it's not you for the moment. Is that plastic stock free floated around the barrel? Are the action screws tightened down, but not too tight? With that stock and a bipod you can risk warping the fore end if you are twisting it around too much. I second shooting it off a bag.