A tool for use in cutting a tie wrap that is bound about at least one wire and a method of operating the tool. The tool includes a housing having a first side and a second side, wherein the first side and the second side are coupled together to define a cavity. The housing further includes a groove formed in the first side and in the second side, wherein the groove is in flow communication with the cavity. A blade is coupled to the first side and positioned with the cavity, wherein the blade includes a cutting surface partially extending into the groove. The tool also includes a spacer coupled to the housing and configured to maintain the wire a distance away from the cutting surface when the housing is applied to the tie wrap.