Currently the report section of absorb does not allow you to view a pass/fail criteria for observation checklists. Instead, you have to pay $15,000 for Analyze in order to get that criteria in a report in analyze. This should not be something we pay an extra 15k for as it is a basic report from a basic observation checklist. If you are going to enable someone to do an observation checklist, then you should enable someone to be able to gather that information of pass/fail from an observation checklist. If you can't synthesize the data that you're gathering back to the administrator, then don't give the option to gather it.
If you go to Courses, there's Observation Checklist and Observation Checklist Activity reports which include Pass/Fail. I'm not sure why they chose to put reports all over the Admin UI rather than keeping it one tab but hopefully this helps you.