Preheat the oven to 375 degrees F. Prepare large baking sheet with non-stick cooking spray.
In a small mixing bowl, combine bacon, garlic powder and chili powder. Mix until the seasonings are well combined. Set aside.
Cut each strip of bacon into 3 even pieces. Wrap each smokie sausage in a cut strip of bacon tightly. Stab the sausage with a toothpick, all the way through to secure. Repeat for each sausage.
Place each bacon covered smokie (working one at a time) in the brown sugar mixture. Be sure to cover entirely before transferring to the baking sheet.
Bake 25-30 minutes, flipping the smokies halfway through.
While the smokies cook, prepare your dipping sauce. Combine all ingredients together inside a small mixing bowl. Mix thoroughly with a fork. Allow sauce to chill until ready for use.