BoundaryMORPH: Budgeted Reranking via Active Set Selection for Diffuse Retrieval

Open-ended queries in modern Retrieval-Augmented Generation (RAG) are increasingly "diffuse," requiring a large set of documents to be assembled into a finite LLM context window. To ensure retrieval quality, systems use fast dual-encoders and more expensive cross-encoders (CEs) to score candidates. However, the CE budget B is strictly bounded by latency and is often smaller than the context window capacity k. This mismatch makes standard reranking structurally flawed: it wastes compute verifying obvious top candidates while ignoring relevant documents further down the initial ranking. To address this, we introduce BoundaryMORPH, a novel algorithm that allocates CE budget specifically for the LLM's context capacity k. Using a Gaussian Process, BoundaryMORPH treats the initial dual-encoder ranking as a structural prior and intelligently spends CE calls on resolving top-k set membership at the boundary, rather than seeking a single most-relevant document. Information from each CE call propagates to unscored documents, maximizing the utility of the budget. We demonstrate that BoundaryMORPH achieves state-of-the-art set retrieval quality across multiple models and datasets with open-ended queries (+5.4 nCG@100 over the strongest baseline).