Practical Code RAG at Scale: Task-Aware Retrieval Design Choices under Compute Budgets

We study retrieval design for code-focused generation tasks under realistic compute budgets. Using two complementary tasks from Long Code Arena -- code completion and bug localization -- we systematically compare retrieval configurations across various context window sizes along three axes: (i) chunking strategy, (ii) similarity scoring, and (iii) splitting granularity. (1) For PL-PL, sparse BM25 with word-level splitting is the most effective and practical, significantly outperforming dense alternatives while being an order of magnitude faster. (2) For NL-PL, proprietary dense encoders (Voyager-3 family) consistently beat sparse retrievers, however requiring 100x larger latency. (3) Optimal chunk size scales with available context: 32-64 line chunks work best at small budgets, and whole-file retrieval becomes competitive at 16000 tokens. (4) Simple line-based chunking matches syntax-aware splitting across budgets. (5) Retrieval latency varies by up to 200x across configurations; BPE-based splitting is needlessly slow, and BM25 + word splitting offers the best quality-latency trade-off. Thus, we provide evidence-based recommendations for implementing effective code-oriented RAG systems based on task requirements, model constraints, and computational efficiency.