Generally there are two areas that can be a problem. Barrel to bushing fit and slide to frame fit. If you can't shake the gun and make it rattle then neither of these should be enough of a problem to cause this sort of inaccuracy. Seriously, I could throw the bullet through the paper at that range.
Is it brand new? My Rock Island was barely more accurate than that for the first 8 shots, not very good for the second 8 and then really tightened up after that and I am perfectly happy with it now.
I own firearms not to fight against my government, but to ensure I will not have to.