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Performance assessment is exceedingly considered a key concept in teacher education programs worldwide. Accordingly, in Iran, a national assessment system was proposed by Farhangian University to assess the professional competencies of its ELT graduates. The concerns regarding the validity and authenticity of traditional measures of teachers' competencies have motivated us to devise a localized performance assessment scheme. Therefore, the present study aimed to develop a performance assessment scheme to be used as a benchmark for assessing the professional competencies of ELT graduates of this university. To this end, three assessment tasks and rating scales were developed, piloted, and administered. Next, Haertel's participatory approach was employed to set passing standards for the assessment tasks as well as the whole assessment scheme. Analysis of the data revealed inter-rater and intra-rater reliability coefficients of 0.85 and 0.89. The validity of the assessment scheme was also confirmed by experts' judgments made, to a large extent, on the correspondence between the target domain and test domain skills. Based on the results, the proposed assessment scheme is rendered more efficient and reliable in comparison to traditional tests with regard to the following dimensions: a) higher degrees of reliability and validity of the assessment scheme aimed at the improvement of licensure and program development; b) stronger evidence for inter-/intra-rater reliability and consistency of scoring; and c) an optimized and systematic procedure for setting passing standards based on the consensus of experts' judgments. It is believed that further development of the proposed assessment scheme unlocks its potential to be used as a large-scale teacher assessment model for Farhangian University.