Whether off-the-shelf SLMs meet practitioner-defined thresholds and, when they fail, why, and whether quantization changes the answer are asked, and an eligibility gap is found.
Abstract
Agent harnesses increasingly want to run small language models (SLMs) on the microtasks around a frontier large language model (LLM) planner: auto-approving shell commands, writing memory, selecting tools, ranking past turns. We ask whether off-the-shelf SLMs meet practitioner-defined thresholds and, when they fail, why, and whether quantization changes the answer. We build a benchmark of 4 such microtasks with fixed prompts and automatic metrics, each with a pre-specified threshold $\tau$ anchored to a cheap non-LLM baseline and a CI-aware eligibility rule (a configuration passes only if its confidence bound clears $\tau$). Sweeping Qwen3 0.6/1.7/4/8B at their best (FP16, greedy, one frozen prompt, no tuning), we find an eligibility gap: 0 of 16 (4 tasks $\times$ 4 models) configurations pass (verified by checking the raw outputs and parser behavior). A logprob decision-threshold diagnostic (T1/T3/T4; T2 via a context-length/cascade probe) separates the failures into capability deficits and failures that can be addressed by changing the decoding threshold (4 regimes). Quantization to 4-bit (RTN/GPTQ/AWQ) does damage that depends on model size and moves no configuration into eligibility (certified on the reconstructable hard-label tasks T1/T3, diagnostic/windowed robustness on T2/T4), so the gap tracks model size more than precision; it replicates on Llama-3.x (12/12 ineligible) and is robust to the anchor choice (a $\tau$-sweep) and to prompt wording (0/112 eligible across the original plus 3 neutral paraphrases per cell). The practical implication: place SLMs behind a baseline that meets the CI-backed threshold, and use the SLM only where the baseline fails to meet the threshold; e.g. a 4B re-ranker over a BM25 shortlist beats BM25 ($+0.047$ [0.020, 0.073], without itself certifying eligibility).
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