Place potatoes into a large pot and cover with salted water; bring to a boil. Reduce heat to medium-low and simmer until just tender, 15 to 20 minutes. Don't overcook, as they will be difficult to saute. Drain. Let cool in the refrigerator for 8 hours, or overnight. Leave the skins on, as they add color and flavor.
Cut potatoes into bite-sized pieces.
Heat a large saute pan over high heat until very hot. Add olive oil; add potatoes when oil begins to smoke. Saute until they start to brown, about 6 minutes. Add bacon and saute until golden, 2 to 3 minutes. Add onions and peppers and saute for 2 to 4 minute. Remove from heat. Season with salt and pepper and garnish with chives and thyme.