Transport and magnetic properties of LaCoO3-based compounds, doped with 20% Sr and 2.5, 5, 10, 15, 20 and 30% Fe, were investigated by means of magnetization, resistivity and magnetoresistance measurements as well as by 57Fe Mossbauer spectroscopy. While the temperature dependence of the dc and ac magnetic susceptibilities reveals the presence of magnetic phase separation accompanied by spin-glass and cluster-glass behavior, the electrical resistivity and magnetoresistance characteristics indicate that the mesoscopic structure of the present compounds is rather well described as consisting of ferromagnetic, metallic grains embedded in an insulating matrix. The effect of the partial Co - > Fe substitution on the bulk magnetic and transport properties, as well as on the local state of Co and Fe ions is discussed.