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I think by layered, Dave means multiple layers of vinyl use to make an image. For example, the shield above could be done with the yellow cut out as the entire image and then separate grey, white and black stickers would be applied over it to complete the image. The image on top would probably...

As long as the pic is detailed I don't see why a sign company can't do it. Our local sign and sticker shop makes full color decals for the local Fire Depts and such. Might be better to have it in bmp format or something. It depends on the software they are using. If it's a pic of a sticker...