I'm running a Leupold 1.25-4 optic. Its a stock DPMS 16" carbine. The trigger sucks but I'm getting used to it. Right now I'm trying to decide between SR and CQB. I'm in the SR Clinic coming up and hope to make at least one CQB match this year and working on a load for that. If I go the SR direction I'll probably upgrade to a rifle. If I go CQB I'll probably just stick with this one and leave it stock. Maybe upgrade the trigger. In the mean time I'm just curious if this grouping issue is common to the AR platform.
I think you are on the right track with everything. Your rifle and optic is well suited to SR and CQB - both items are a happy medium for both sports. There are three items I'd focus on if I was in your shoes:
Trigger: change out to a Gieselle Service rifle trigger. You can always swap it out of the rifle and sell it in stock form if you ever decide to upgrade or build another AR. The Gieselle trigger is the gold standard.
Float that barrel: use a plane Jane float tube like a JP or get one with rails; it doesn't matter much which you get, but floating it does.
Ammo: I question what controls you have in place on your ammo. What is your velocity spread looking like? Runout? Are you trimming every piece of brass? All the same manufacturer of brass? Are you crimping your ammo? How are you measuring and throwing your powder charge
Nailing these down could be the difference between 1.5 and 2.5 moa groups with a 1.5moa gun.
For CQB, I get a sh!tz load of Hornady bulk 55gr FMJ, mixed brass and a decent surplus ball powder like Higginson's WC-735 and spool up the Dillon 650.
For SR and those SMKs I'd recommend one lot/make of quality brass, and individually metered powder charges.
Use 'competition' seating and FL sizing dies and spend time on brass prep.
Use a Lee Factory crimp die to crimp all of your ammo (even those SMKs, give em' a light crimp if nothing else).
There is more, but that about covers the important stuff.