Can't make out the scale on the target. Group looks like somewhat over 2" with some flyers. Rulers or coins help to eliminate guesswork with object sizes.
Avenge did not mention his rifle experience, nubie or seasoned camp perry, or somewhere inbetween.
I am guessing (I know, ass-U and Me) somewhat new to 30-06.
If I shoot 30-06 or 308, then switch to ar15, my groups look like that for a while, and my ar will shoot 2 moa all day long no problem.
He has some flyers, did he call them? Was a spotter tracking his rounds to see if he was stringing, or just random grouping?
My M1 shoots a group about 4" at 100 meters, and my 7.62 mauser shoots about 2". I believe some of this is due to there being absolutely no loose parts on the mauser, and there being some rattling parts (messing up the harmonics) on the garand. Follow thru is important when shooting, and bolt guns aren't as distracting as gas guns, so more practice is required for the garand than for the mauser (in my case, anyway).
There are nat'l match style mods that can be made to sights, stock, handguard, oprod, and trigger assy, but it is always best to establish a baseline for accuracy in issued condition.
And the shooter did state " I expected better than the 4-5 MOA or so that that picture shows.", that is where I got the idea it was about 4moa.
Let us know what you find on the rifle.