I would just mention your concern to HR. They are paying these insane fees as well. I would also point out your concern that the company might be putting itself into a legal liability situation. Don't sound threatening of course, act like you are concerned about it because you really like your job and you don't want to see the company in a legal battle.
"ERISA Section 404(a)(1) requires that fiduciaries act prudently and solely in the best interest of the plan’s participants and beneficiaries when selecting or monitoring plan service providers.
a. This was not a specific requirement previously and greatly increases the liability of all
individuals functioning as fiduciaries on behalf of the 401(k) plan.
b. This means the Chief Finance Officer and all other individuals at the company who “play a
role” with the 401(k) plan now have increased liability for lawsuit risk."
http://www.wadefinancialgroup.com/files/Final-401k-Position-Paper.pdfFidelity, the nation's largest 401k provider, got sued by their own employees over this kind of crap.
http://money.cnn.com/2014/08/18/retirement/fidelity-lawsuits/Wells Fargo and Wal Mart have also been hit, but Fidelity's got more attention since its what they do.
Now since its a smaller company you aren't going to get the same plan as Google or Apple, but they should be able to do better than 2.5%. Even if they kept the admin fee of 1% and used Vanguard funds that would bring the costs down into the 1.1-1.5% range.