A tool (10) for use in cutting a tie wrap (12) that is bound about at least one wire (13) and a method of operating the tool. The tool includes a housing (28) having a first side (40) and a second side (42), wherein the first side and the second side are coupled together to de¬ fine a cavity (54). The housing further includes a groove (58) formed in the first side and in the second side, wherein the groove is in flow communication with the cavity. A blade (32) is coupled to the first side and positioned with the cavity, wherein the blade includes a cutting surface (84) partially extending into the groove. The tool also includes a spacer (34) 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.
