Hi Jon,
From the sound of it, I assume you are talking about a grading system where if a student scores a certain amount of marks their results should show as Competent/Not yet Competent in a task.
You can do this by going to Administration>Grades.
Then Letters>Edit
Let us say, you are using Grade(%) system. The defaults are: Grade Letter 1,2,3: A+, A, A-... Grade Boundary 1,2,3: 95%, 90%,.....
You can write Competent inplace of letter A+ and choose what ever % you want from the drop down and the for rest of the boundaries write Not Yet Competent in Grade Letter field.
Write a formula for caluclating the course total by going to Grader Report> Turn Editing on> Course Total. Once you set up your formula results will be displayed with the set Grade Letters both for the cumulative and individual tasks, in this case its either Competent/Not Yet Competent.
Hope this helps.