On August 28, 2006, about 1215 Pacific daylight time, a Mooney M20C, N5738Q, sustained substantial damage subsequent to a hard landing at the Orcas Island Airport, Eastsound, Washington. The flight was being conducted under Title 14, CFR Part 91, as a personal cross-country flight, and operated by the pilot. There were no injuries to the pilot or passenger. Visual meteorological conditions prevailed, and an instrument flight plan had been activated for the flight to Eastsound. The flight originated from Missoula, Montana, at 0930 mountain daylight time. The pilot reported that approximately 40 minutes prior to landing he noted a reduction in manifold pressure and indicated airspeed, however elected to continue the flight to his flight-planned destination. He reported that the aircraft's approach speed was slow and that he added power too late. A witness stated the airplane seemed slow during the final approach segment of the flight and appeared to have stalled approximately 30-40 feet above the runway. After contacting the runway, the airplane bounced and the pilot applied power. After contacting the runway the second time, the airplane veered off the runway and came to rest west of the intended runway.