Combine the meat drippings, ketchup, vinegar, bacon fat, hot sauce, and liquid smoke with ½ cup water in a large pot.
Slowly bring to a boil over medium heat; decrease heat to med-low and let the sauce simmer gently until richly flavored and slightly reduced, about 30 minutes, stirring occasionally to prevent scorching.
Taste for seasoning, adding salt and pepper to taste.
Let cool to room temperature, then refrigerate, covered, until serving; will keep for 3 days.
Bring to room temperature or warm before using.
Variation—to approximate the flavor that comes from pit smoking, there is liquid smoke in the recipe; as an alternative, you can put the pot in your smoker and cook it for several hours in the presence of hickory smoke.