Heat olive oil in a large stock pot over medium heat; cook and stir onion, bell pepper, and jalapeno pepper until onion is translucent, about 10 minutes. Add sausage and ground beef; continue to cook and stir until meat is browned and crumbly, about 7 minutes. Drain and discard grease.
Season meat mixture with chili powder, cayenne pepper, and salt. Add pinto beans, tomatoes, and water and bring to a simmer over medium heat. Reduce heat to medium-low and continue to simmer for 1 hour.