Fry bacon and reserve about 3 T of fat. Remove bacon from pan, crumble when cool.
Remove seeds and veins from peppers. Dice peppers and onion. In a large pot or Dutch oven, sauté peppers and onion in the bacon fat and oil on medium heat for about 5 minutes or until onions are translucent.
Add minced garlic and sauté for another minute. Transfer vegetables to a bowl and set aside.
Add the beef and sausage to the pot and brown.
Add cooked vegetables and crumbled bacon to the pot.
Add the sugar and spices and cook for another minute until fragrant.
Add the rest of the ingredients and bring to a boil. Simmer uncovered for at least an hour, stirring occasionally.