No it is not. The 2004 revision of IDEA allows observational data to supplement but not replace the evaluation that is required by statute.
Here is a link to the evaluation criteria as stated in law. As you will see, it is quite inclusive. While a psychological evaluation is not specifically required, it is almost without exception done initially, except in cases where the only issue is speech and language.
This is at 20 U.S.C. § 1414 et seq This is a very good section of the law to study carefully. The reference I made in the first paragraph is the the published regs stating that RTI data may be used but not substituted for an evaluation as provided by 1414
http://www.wrightslaw.com/idea/law/section1414.pdf
Remember to send everything certified and start a very good filing system---you are going to need one.
I wish this were easier for parents but it usually is not---and when it comes to advocacy, the child whose parent is effective is the child who gets needed services.
Martie