The error does not mean the problem is with your server. It could be a remote server rejecting the message at the point of delivery. All it means is that the NDR was generated on your server.
Therefore you have to look at the SMTP logs and Message Tracking to see whether an external connection attempt was made at the time. That will tell you where the problem was.
Of course if there is an external connection then the problem is outside of your control.
-M