Preheat the oven to 400ºF.
Either prepare the bacon on a sheet pan in the oven for 18-20 minutes (or until crispy), or cook in a large skillet over medium heat. Transfer to a paper towel lined plate. Once cool, crumble in small pieces and set aside.
To the large skillet on medium heat, ensure there are 2-3 tablespoons of the bacon grease. Sauté the onion and bell pepper for 1 minute.
Add paprika, chili powder, garlic powder, salt and black pepper. Cook for 1 minute.
Stir in vinegar, BBQ sauce, ketchup, dijon mustard and brown sugar.
Fold in baked beans and 3/4 of the cooked bacon. Bring to a boil, then turn off the heat. Add hot sauce if desired. Taste and adjust any seasonings.
Pour in a 13x9-inch baking dish. Sprinkle the remaining bacon on top if desired. Bake 40-45 minutes, or until bubbly.