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Your process is almost identical to mine, except my batches go from about 2.5 gallons preboil to 1.7 gallons after. One oddity in your process that I noticed:
•Then slowly poured 170f water heated in separate pans over the top, trying to cover as much of the grain as possible
•Cleaned out stock-pot, added colander on top and recirculated wort through grains
If you are sparging first and then recirculating after the sparge, then your spent grains are soaking up a lot of the good sugars! This is out of order and hurting your efficiency significantly. You should mash in a bag (BIAB), and recirculate first and then sparge after, more like this:
•Pull bag from kettle and set on colander over bucket
•Pour the sweet wort from the kettle through grains and colander
•Then slowly pour 170f water heated in separate pans over the top, trying to cover as much of the grain as possible
This will likely fix your issue.
Also ensure you are crushing the grains enough. If using the mill at your LHBS, then double crush. If using your own mill, set the mill gap to the thickness of a credit card or slightly thinner.
Hope this helps! Let me know if you have more questions -- I might be the only other guy on the interwebs who brews like you do!