In medium saucepan, bring potatoes, 1/2 teaspoon salt and water to cover to a boil over medium-high heat. Reduce heat to medium-low; simmer until potatoes are tender, about 6 minutes, drain well.
In a large cast-iron skillet, cook bacon over medium heat until crisp. Remove bacon and let drain on paper towels, reserving drippings in skillet.
Add peppers and onion to drippings; cook over medium-high heat until slightly brown, about 3 minutes. Add potatoes, chicken, garlic powder, pepper and remaining 1 teaspoon of salt; cook, stirring occasionally, until chicken is lightly brown, about 3 minutes. Sprinkle with bacon and parsley. Serve with hot sauce.