GRACE-RAG: Governed Retrieval Architecture for Canonical Evidence Synthesis, Enabling Lightweight Deployment in Closed-Domain Institutional Settings

Abstract

Retrieval-Augmented Generation (RAG) systems are widely used in institutional question answering settings where responses must be grounded in authoritative documentation (Gao et al., 2023). In entity-dense domains where relevant information is distributed across heterogeneous documents, vector-only retrieval often produces fragmented evidence and increases dependence on inference-time reasoning (Zhao et al., 2024). This paper introduces GRACE-RAG, a retrieval-governed, graph-augmented RAG architecture that externalizes structural reasoning from the generative stage to a structured retrieval layer, resolving structural ambiguity offline, enabling deployment on self-hosted lightweight models calibrated to closed-domain institutional vocabulary. Experiments across three model capacities: Mistral 24B, GPT OSS 120B, and Gemini 2.5 Flash show consistent improvements in completeness, depth, and anticipatory coverage, with overall quality gains of up to 20% under mid-scale models, indicating that retrieval architecture governs structural quality over model scale, reducing computational and latency footprint without dependence on proprietary systems.