In this paper we present the concepts and the organization of the FP7 Project SMAC (Smart systems Co-design), an Integrated Project (IP) of the 7th ICT Call under the Objective 3.2 "Smart components and Smart Systems integration". We describe in particular the project objectives and its organization, and how it addresses the challenges of the integration of heterogeneous and conflicting domains that emerge in the design of smart systems. The main outcome of the SMAC project is the development of flexible software platform (the SMAC platform) for smart subsystems/components design include methodologies and EDA tools enabling multi-disciplinary and multi-scale modeling and design, simulation of multi-domain systems, subsystems and components at all levels of abstraction, system integration and exploration for optimization of functional and non-functional metrics.